Telecom Italia (TI) is in exclusive negotiations with Milan-based media company Cairo Communication over the sale of its stake in the La7 TV channel that forms part of its media unit.
Following a board meeting yesterday chaired by Telecom Italia…
Telecom Italia (TI) is in exclusive negotiations with Milan-based media company Cairo Communication over the sale of its stake in the La7 TV channel that forms part of its media unit.
Following a board meeting yesterday chaired by Telecom Italia chairman and CEO Franco Bernabe, the company issued a short statement saying it had agreed to initiate the talks. The incumbent plans to sell its entire stake in La7, excluding the 51% shareholding in MTV Italia held by La7 itself.
“The decision has been communicated to the chairman of Telecom Italia Media, the company controlling the TV channel, for his evaluation,” TI stated.
Barnabe has since told reporters that talks are at an advanced stage and the company hopes to complete the deal within a couple of weeks.
TI launched a sales process for its 77.7% stake in TI media last year in an effort to cut debt and, according to media reports, received a number of bids for the listed business, which has a market cap of €227.6m, before the deadline last week. The board was said to have seriously considered a bid from private equity firm Clessidra for the whole media unit but rejected it in favour of Cairo Communication’s offer. Diego Della Valle, chairman of Italian shoe and leather goods maker Tod’s, told media on Saturday that he had asked the TI board for time to consider a possible purchase. After the telco’s announcement yesterday, Della Vale, whose family has shares in international multimedia publisher RCS MediaGroup, issued his own statement saying that he had wanted to build “a new model of media company” with a group of Italian investors, La7 employees and others, adding that they hope they will be able to do so anyway. According to a report in Italian newspaper Il Sole 24 Ore, the TI board decided Della Valle’s proposal, which did not contain precise figures, had come too late.
Cairo Communication and subsidiaries sells advertising across multiple media and publishes books, magazines and websites.
Telecom Italia is considering disposal options for its media investments as part of a number of measures to cut debt. The incumbent also recently announced plans for a €3bn hybrid bond.
