Mediobanca has cut the value of its indirect investment in incumbent Telecom Italia (TI) by more than half, as it considers a stake sale.
The Italian investment bank said today its investment in Telco, the holding company which owns 22.4% of TI, has…
Mediobanca has cut the value of its indirect investment in incumbent Telecom Italia (TI) by more than half, as it considers a stake sale.
The Italian investment bank said today its investment in Telco, the holding company which owns 22.4% of TI, has been written down to €0.53 a share from €1.20 and has been reclassified as available for sale in line with its 2014-2016 business plan.
Mediobanca and other Telco members – Telefonica and Italian financial organisations Assicurazioni Generali and Intesa Sanpaolo – have until 28 September to request early exit from their shareholders’ pact.
Mediobanca CEO Alberto Nagel was quoted saying yesterday on a conference call that the bank is rather a seller of its “exposure” than an investor expected “to put additional money in Telecom Italia”.
The other two Italian members are also reportedly open to selling. Telefonica, on the other hand, is looking to boost its stake in TI.
As reported yesterday, the Spanish telco is said to have offered fellow Telco members €800m for part of their stakes in the holding in a bid to convince them to remain part of it. This would have prevented potential antitrust problems in Latin American countries where TI and Telefonica both operate. While the other Telco members are said to have spurned the offer, talks reportedly continue.
Bloomberg today quoted a person familiar with the matter as saying the Italian shareholders are also in talks with other potential buyers.
Meanwhile, Egyptian businessman Naguib Sawiris recently confirmed his interest in taking a stake in TI, but said he could be dissuaded if media reports stating Italy would prefer Telefonica are correct.
US incumbent AT&T and Carlos Slim’s Mexico based telco America Movil (AMX) have also been named in media as interested parties. AT&T has declined to comment on the rumours, while AMX CFO Carlos Garcia Morena has denied his company has had contact with TI shareholders.
TI is set to hold a delayed board meeting on 3 October at which members are expected to discuss potential changes to the company’s ownership structure as well as the overall business plan. The Milan-based telco is working to cut net debt, which stood at €28.81bn as of 30 June.
