The Italian government is reportedly to reopen the shelved project to spin off Telecom Italia’s (TI) fixed-line network, potentially via a new agreement with indirect shareholder Telefonica or exercising its golden share in the incumbent telco.
Prime…
The Italian government is reportedly to reopen the shelved project to spin off Telecom Italia’s (TI) fixed-line network, potentially via a new agreement with indirect shareholder Telefonica or exercising its golden share in the incumbent telco.
Prime Minister Enrico Letta is meeting with the Italian government’s commissioner for the digital agenda, Francesco Caio, to discuss the project, newspaper La Stampa reported.
The revived interest in the project stems from concerns Italy is not on target to reaching Digital Agenda objectives by 2020, the report stated.
TI approved a plan to spin off the fixed-line network into a newly-created company last May. However, the project was put on ice after Spanish incumbent Telefonica agreed to gradually increase its stake in TI via holding company Telco. Telefonica was said to have preferred the Milan-based telco to find other means of improving domestic revenues.
According to the report, Italian bank Cassa Depositi e Prestiti (CDP) could take a minority stake in the new fixed-line entity.
Minister, minority investor against TIM Brasil sale
Meanwhile, deputy industry minister Antonio Catricala told the Huffington Post that he does not believe TI should sell its 67% stake in TIM Brasil, which he described as a “strategic asset”, partly because it would give the Italian telco even less incentive to divest its fixed-line network.
Catricala noted that Caio is finalising a report on investments in Italy’s telecoms infrastructure.
Separately, TI minority shareholder Marco Fossati has reportedly ramped up efforts to prevent a sale of the majority stake in the Brazilian unit, saying the company could be worth US$40bn – almost three times its current market value.
Fossati, TI’s third largest shareholder with a stake of about 5% via holding company Findim, sent a letter to the TI board stating that only a price much higher than the current market value of TIM Brasil would compensate for losing the asset, Reuters reported.
TI CEO Marco Patuano has described TIM Brasil as a “core asset” and said only a “convincing” price would lead to a sale.
Earlier this month, a spokesperson for investment bank BTG Pactual told TelecomFinance that the institution was working on a deal for TIM Brasil but declined to comment further. Telefonica subsequently denied media reports that it was part of a corporate vehicle to acquire TIM Brasil before splitting its assets between its three main rivals.
Telefonica’s Brazilian unit Vivo competes with TIM Brasil, which has created issued with Brazilian regulator Cade. In December, Cade said it was not happy with Telefonica’s level of influence on the country’s mobile market. The regulator added that the Spanish operator must either reduce its stake in TI’s controlling shareholder Telco – which has given it sway over TIM Brasil – or find a new partner to take joint-control of its direct subsidiary Vivo.
Fossati has also reportedly asked the TI board to introduce a proportional shareholder voting system which would give minority shareholders greater board representation.
TI is set to hold a board meeting tomorrow.
