Tim in the sights of the Americans of Kkr. The American buyout fund would be interested in the entirety of the entire Telecom Italia group and not only, therefore, to the subsidiary FiberCop, in which it already holds a 37.5% stake.
Corriere della Sera launched the bombshell, which reported that, “in the past few hours, on the table of the president of the telephone group, Salvatore Rossi, she has arrived an expression of interest from the US fund, former shareholder of FiberCop, the company in which Tim moved the last mile of the telephone network, for the entire group ”.
It is worth remembering that Telecom Italia sees majority shareholders the French telecommunications giant Vivendi – which has recently done nothing to hide its disappointment with the group’s performance – with a stake of around 24%, and Cassa Depositi e Prestiti (CdP), second largest shareholder, with a stake of 9.8%.
This afternoon he met – as the Corriere had anticipated – the extraordinary board of Telecom Italia to examine the made in USA proposal.
TIM: Vivendi firmly denies discussions with any fund
Vivendi’s French immediately distanced themselves from any suspicion of an alleged link with the American fund or other funds aimed at stirring things up in Tim’s shareholding, with a spokesperson who immediately clarified that “Vivendi strongly denies having had discussions with any fund, and more specifically, with Cvc ”for a possible takeover bid on Tim.
“Vivendi reiterates their willingness and willingness to collaborate with the Italian authorities and public institutions for Tim’s long-term success – continued the spokesperson, recalling that the French giant “is a long-term investor in Telecom Italia and has been from the beginning”.
No axis with the funds, therefore.
That said, it is undeniable that the French frustration with how things are going at TIM is there, given that it has been reported for days that the shareholder has questioned the management and the position of CEO Luigi Gubitosi, after the Italian group launched two profit warnings within a few months.
TIM: disastrous performance of the stock, -50% in 5 years
And what about the disastrous performance of the title?
In an article with which he reports the latest rumors, Bloomberg he recalled that Telecom Italia’s quotations have fallen by approximately 50% over the past five years, and that the current value of the stock is equal to 1.2 times the profits, “a fraction of the 14 times, on average, of the stocks of European rivals”. This, in the face of a mountain of debt exceeding 22 billion euros (based on data at the end of September): an amount that “may be 3.3 billion euros less than last year”, but which certainly did not prevent a S&P Global Ratings to cut rating, last Friday, from “BB +” to “BB”.
The vulnerability of Telecom Italia in the face of the takeover bid risk is, in short, a fact. And the French have been asking for a shock for a while to revive the group.
On the other hand, there has been no lack of new reasons for pawing in recent months: among these, the problems caused by what should have been the goose that lays the golden eggs, or Dazn (with someone who has made it clear that thank goodness there is TIM Vision) and as Erhan Gurses, an analyst at Bloomberg Intelligence, wrote in an analysis, the fixed telephony market is preparing to become even more crowded with the imminent entry of Iliad.
TIM ready to launch new tariffs with price increases, analysts see the risk of a more challenging scenario with Iliad entry into the fixed sector
From the penultimate meeting of the long-awaited extraordinary board of directors on 11 November last, no big news emerged, so much so that the market had returned to attack the Telecom Italia stock, already painfully decimated on the stock market. Nothing had been said especially on the hot topic for the markets of the single network.
The blow to the Telecom stock came at the end of October, with a quarterly that has nothing short of frozen the market:
the group led by Luigi Gubitosi reported revenues for the third quarter that missed the average estimate of analysts, settling at 3.84 billion euros compared to 3.88 billion of the Bloomberg consensus. Slightly below expectations too organic EBITDA at 1.67 billion (consensus 1.68 billion). The domestic EBITDA in particular disappointed at 1.3 billion (-8.3%).
TIM: how will the Draghi government move?
At this point, what will be the attitude of the Draghi government towards the takeover bid of the American fund for Telecom Italia which, despite all its troubles, still remains the largest telephony operator of the made in Italy?
Il Corriere wrote that “through its diplomatic channels, Kkr would have sounded the government in recent days, from which no indications would have arrived, as usual since Tim is a listed company. But the fact that the proposal then reached the telephone group’s table through the official channels would suggest, if nothing else, neutrality, it being understood that Palazzo Chigi still has the powers of the “golden power” to protect the network, a strategic security asset. national, including the international network held within Sparkle. It is conceivable that in the event of a takeover bid, the government will set up stakes to defend the network, both for the part contained in FiberCop and for the so-called «primary network» left to Tim “.
Draghi, however, could also decide to do something else, or rather “go further and open a table to discuss the general structure of the network, in a perspective that could also lead to to a sort of nationalization under the umbrella of the Cassa Depositi e Prestiti, shareholder with 10% of Tim and with 60% of Open Fiber, the other company that is building the fiber optic network in Italy ”.
A company: Draghi evaluate the use of golden shares
Meanwhile, a company has already made its voice heard, with the statements of the vice president Giuseppe Spadafora: “Tim is not a company like many others: it is a strategic asset for the country and a fundamental asset, of public interest, decisive for Italian economic growth and of our micro, small and medium-sized enterprises. Technological evolution also passes through the telecommunications network and a very high level infrastructure, suitable for the development needs of our SMEs, must be protected. The government led by Mario Draghi must thoroughly evaluate the use of the golden share so that the telecommunications network is not prey to foreign subjects, in the worst case highly speculative funds “. According to Spadafora “Cassa Depositi e Prestiti, already a 10% shareholder of Tim, must play a fundamental role and close, 25 years after the infamous privatization, a dark page of our economic policy”.
KKR: $ 429 billion in assets under management, not hedge fund
KKR is a leading global investment firm that manages diverse alternative asset classes including private equity, credit and real estate assets, along with strategic partners who manage hedge funds. Assets under management stood at $ 429 billion as of June 30, 2021. So we read on the site of the US fund, which is not considered speculative.
“As an investor with an industrial vision, our goal is to generate attractive returns on investments by following a patient and disciplined approach, recruiting high-level people, striving for the highest standards of excellence, and aligning our interests with those of our investment partners “.