Telecom Italia looking at network valuation of at least 25 billion euros-sources
MILAN (Reuters) – Telecom Italia (TIM) is seeking to fetch a valuation of not less than 25 billion euros ($26 billion) together with debt for its grid underneath a plan to separate its fixed-line belongings from its companies arm, two sources near the matter mentioned.
The worth tag is nearer to the 31 billion euro determine sought by TIM’s prime shareholder Vivendi in any potential community deal than preliminary estimates supplied by two sources according to analysts estimates.
In Could sources had advised Reuters TIM has began taking a look at a valuation of round 20 billion euros, together with debt and earlier than any synergies, in a possible community deal.
The previous cellphone monopoly may promote its home mounted entry community and its submarine cable unit Sparkle as a part of a government-sponsored venture to create a unified broadband firm with state backed rival Open Fiber.
Valuation is a key difficulty in ongoing talks with state lender CDP to mix TIM’s community with Open Fiber, which is majority owned by CDP.
CDP can also be the second largest investor in TIM.
TIM’s board will meet on Wednesday to debate a marketing strategy centred on the break up of its mounted community belongings from its service companies. ($1 = 0.9707 euros)
(Reporting by Elvira Pollina; Enhancing Valentina Za, Alexandra Hudson)
