Asset spin-off is under scrutiny as major stakeholder KKR is said to be growing impatient as its takeover ambition is frustrated
KKR could block Telecom Italia’s (TIM) ambitions to launch a network company by vetoing a transfer of last-mile landline unit FiberCop, La Stampa reported on Saturday.
The US private equity fund, which owns 37% of FiberCop, last year made a €10.8 billion bid for TIM but after receiving no official response it’s growing impatient, the report said.
Fibercop blocked by Ivy Leaguers
According to La Stampa’s financial sources, KKR won’t let FiberCop get folded into any network company. TIM’s new management team has been working on a new plan that would put the former phone monopolist’s network assets into a NetCo vehicle and splitting it off from its services businesses.
The overhaul would be an alternative to KKR’s takeover proposal and could pave the way for a merger of NetCo with smaller rival Open Fiber to create a national fast-fibre network champion, sources have said.
National fast fibre
The government owned Cassa Depositi e Prestiti (CDP), which owns around 10 per cent of TIM, controls 60% of Open Fiber, with the rest in the hands of Australian investment fund Macquarie.
“This move would open new scenarios (but) would not be that surprising taking into account the reluctance of TIM to deal with the offer,” Italian broker Banca Akros said. This news was revealed on Saturday, so there has been no response from KKR and TIM so far.