CDP to make offer for Telecom Italia grid
Italian state lender CDP is ready to make a preliminary offer for Telecom Italia's landline grid, as it presses ahead with plans to create a single broadband company with Open Fiber after a general election on Sunday.
CDP said in a statement that they are working with our partners to finalize the valuation process of the assets in accordance with the Memorandum of Understanding entered into on May 29.
Two sources familiar with the matter said that CDP is expected to submit a non-binding offer in the first half of October.
In May, TIM and CDP reached a preliminary agreement aimed at bringing together TIM's assets with those of Open Fiber under CDP control.
The plan was sponsored by the outgoing government, led by Mario Draghi and intended to help improve broadband coverage and speeds across the country, avoiding a duplication of investment.
CDP and TIM aimed for a binding deal by the end of October, according to the preliminary agreement signed in May.
Multiple delays have been caused by the non-binding offer due to disagreements over the value of assets and political uncertainty linked to the snap election.
A source familiar with the French media group said that TIM's top investor Vivendi is looking for a valuation of 31 billion euros to back a sale of the grid.
CDP, which owns a 10 per cent stake in TIM and also controls Open Fiber, values Telecom Italia's landline grid in the region of 20 billion euros including debt, two sources familiar with the matter said, cautioned that discussions are still under way.
Other sources pointed to a range of 15 -- 18 billion euros. CDP didn't comment on the timing and valuations of the offer.
The right-wing bloc that led the election, however, supports the creation of a unified network champion, but has called on CDP to take over TIM, as a result of the nationalist party Brothers of Italy.
A new government, likely to be headed by Brothers of Italy leader Giorgia Meloni, is expected to be installed around the end of next month.