Cabinet undersecretary Alessio Butti has been given the authority to oversee Rome’s strategic initiatives on the development of high-speed broadband networks by Italian Prime Minister Giorgia Meloni.
According to a government decree seen by Reuters, Butti will now be in charge of the plan. The official had criticized the previous administration’s intention to reduce TIM’s $26 billion debt by selling its landline grid.
The leading investor in TIM is the French media conglomerate Vivendi, with a 24% share, followed by the public investment bank Cassa Depositi e Prestiti (CDP), with a 10% holding.
The plan championed by Meloni’s predecessor Mario Draghi aimed to integrate TIM’s network with CDP-controlled rival Open Fiber. Butti had recommended that CDP should assume control of TIM in order to integrate the network assets of the two firms.
To reduce its debt, the so-called “Minerva” strategy also calls for TIM to sell up its service business and its offshoot TIM Brasil.
CDP’s proposal for TIM has also been hindered by valuation differences with Vivendi, which is seeking remuneration of 31 billion euros ($32.3 billion), more than 10 billion euros higher than the state lender’s valuation.
Economy Minister Giancarlo Giorgetti, reaffirmed on Tuesday that the government plans to take control of TIM’s network, adding that this objective can be achieved in “several ways”