A number of private equity funds are reported to be looking at buying a stake in Italian incumbent Telecom Italia (TI).
Apax Partners, Bain Capital, Providence Equity, Blackstone and KKR are examining TI’s shareholding structure, although they have…
A number of private equity funds are reported to be looking at buying a stake in Italian incumbent Telecom Italia (TI).
Apax Partners, Bain Capital, Providence Equity, Blackstone and KKR are examining TI’s shareholding structure, although they have not yet entertained formal talks with the potential target, according to a report in Italian daily Il Sole 24 Ore.
Bain and Telecom Italia did not respond to a request for comment, while Apax, Providence, Blackstone and KKR declined to comment.
One of the reasons the funds are interested in the Rome-based telco is because of its presence in the Brazilian market via TIM Brasil, which is reviewing a potential merger with Oi, the report said.
According to the report, any foreign investments in TI would require government approval due to national security concerns.
Last November, Apax and Bain submitted a €7.1bn bid to acquire the Portuguese assets of Brazilian telco Oi, but they were outbid by Luxembourg-based telecoms holding Altice.
Providence recently placed an offer for Wind Telecomunicazioni’s tower portfolio together with F2i, although the Italian carrier is now nearing a deal to sell the assets to Spanish infrastructure group Abertis.
Vimpelcom-owned Wind, Italy’s third-largest wireless operator, is also rumoured to be Hutchison Whampoa’s latest target. The Hong Kong group would merge Wind with its subsidiary 3 Italia, currently the country’s smallest wireless network operator. Blackstone considered buying a minority stake in Telecom Italia in 2006, and the following year looked to acquire Wind, along with Apax.
Telecom Italia, which will be announcing its full-year results and 2015-2017 strategic plans tomorrow, is reportedly working on the buyout of its media unit, Telecom Italia Media, which it plans to fully integrate to streamline operations and reduce costs.
The telco is striving to reduce its debt burden, which stood at approximately €28bn as of 30 September 2014, as part of a plan to upgrade its domestic fibre-optic network and consolidate its position in Brazil.
