In a Thursday interview, a former Telecom Italia executive suggested the sale of its domestic retail company (TIM) (TLIT.MI) and Brazilian affiliate (TIMS3.SA) might earn at least 16 billion euros ($16.96 billion).
Former TIM deputy general manager Stefano Siragusa and London-based investment company Merlyn Advisors, representing shareholders under 3% of TIM, challenged the phone group’s landline grid sale initiative.
TIM will maintain its fixed network, cloud, and digital services businesses while selling its Italian retail company and coveted Brazilian affiliate under TimValue to reduce its debts.
Siragusa told the financial newspaper Il Sole 24 Ore that the investors would be willing to increase their holdings to over 5% to summon an extraordinary shareholders meeting to vote on the subject.
He said that TIM’s top investor, Vivendi (VIV.PA), who voiced concerns over the fixed-line network sale, was not “behind” TimValue.
“The real issue is to involve as many shareholders as possible in a project different from that proposed by management,” he added, adding that the idea was “solid” financially and industrially.
U.S. firm KKR (KKR.N) submitted a binding bid for TIM’s grid at 23 billion euros, including debt and variable components, prompting the challenge plan.
TIM directors will begin evaluating KKR’s bid on Friday, and Vivendi has asked them to thoroughly review TimValue before making a decision, Reuters reported.
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