Telecom Italia Shares Rise on Fresh Offer for Network Business

By Adria Calatayud

Shares in Telecom Italia SpA rose Monday after the company said it had received a nonbinding offer for its network business from a consortium formed by Italian state lender Cassa Depositi e Prestiti SpA and Macquarie Group Ltd. that rivals an earlier bid by KKR & Co.

At 0832 GMT, shares in the Italian telecommunications company traded 3.6% higher at 0.32 euros ($0.34).

The offer, which expires at the end of March, is for a new company to be set up that would house TIM's network management and infrastructure assets, the company said.

TIM last month said KKR's offer for a stake in the network company didn't fully reflect the value of the assets and its expectations.

Analysts at Bryan Garnier said in a research note Monday that valuation is a key item in the discussion, together with the Italian state's stake and control in the new company. BG estimates the business is worth around EUR21.4 billion, but even a valuation around EUR20 billion should provide a significant support to TIM's current share price, the analysts said.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

March 06, 2023 03:49 ET (08:49 GMT)

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