Italian state investor CDP is poised to approve a long-delayed non-binding offer for the fixed network of former phone monopoly Telecom Italia, according to reports.
CDP has partnered with the Australian infrastructure fund Macquarie to submit a bid for Italy’s most critical telecoms infrastructure, which will compete with KKR’s bid.
Rumors have been circling that CDP and Macquarie value TIM’s grid at approximately 18 billion euros ($19 billion) including approximately 6 billion euros in debt.
According to the same sources, the joint bid would also include Telecom Italia’s smaller competitor Open Fiber, in which CDP and Macquarie are co-investors.
KKR’s proposal, which values TIM’s grid at approximately 20 billion euros including debt and a 2 billion euro earnout, has given renewed impetus to efforts to restructure ailing TIM after protracted negotiations between the government and TIM’s two largest shareholders, CDP and France’s Vivendi, failed to produce a resolution.
TIM’s most valuable asset has been valued at 31 billion euros by Vivendi, whose approval is required for any sale to proceed.
Prime Minister Giorgia Meloni has consistently stated that her administration intends to gain control of TIM’s network infrastructure while protecting jobs, although there is no consensus within her cabinet regarding how to achieve this objective.