Milan – Telecom Italia sells 2% on the stock market after the resignation of its CEO Luigi Gubitosi
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The title of the Italian operator fell on Monday by 1.96% 0.4711 euro at the close, against the backdrop of an offer to buy the group by the American fund KKR.
The title of Telecom Italia (TIM) lost nearly 2% Monday on the Milan Stock Exchange, after the resignation of its boss Luigi Gubitosi on Friday, pushed towards the exit by the main shareholder of the Italian group, Vivendi. The title gave up 1.96% 0.4711 euro at the close in a market up 0.73%, after falling 3.5% shortly after the opening.
After the announcement a week ago of a mark of interest from the American investment fund KKR in view of the group’s takeover, the stock had soared, gaining more than 30%. The new chief executive, Pietro Labriola, and a committee appointed by the board began on Monday to consider the offer.
A “positive news for the country”, according to the government
The non-binding proposal from KKR, at 0.505 euros per share, values the Italian operator at 10.8 billion euros. This mark of interest is subject to obtaining at least 51% of TIM’s capital, a very low threshold, while Vivendi, which holds 23.75% of its shares, assured Tuesday that it has “no intention to sell its stake ”in the Italian operator, deeming the price too low.
This offer, described as “friendly” by KKR, is suspended on two other conditions: an in-depth audit of TIM’s accounts, which should last around four weeks, as well as the approval of the competent authorities.
The Italian government considered that the interest shown by KKR in TIM was “positive news for the country”, while ensuring “to monitor developments closely”, particularly in terms of jobs and compliance with the objectives of the European plan for stimulus of which the country is the main beneficiary.
Net profit divided by three angry Vincent Bolloré
The State is present in the capital of Telecom Italia with a participation of 9.81% of the Italian Caisse des Dépôts. The government can oppose a takeover of TIM by KKR, by resorting to “golden power”, which gives it special powers in sectors considered strategic for the country.
KKR’s proposal comes as the Italian operator published at the end of October a net profit divided by three to 159 million euros in the third quarter, a latest result that had irritated the French shareholder Vivendi, controlled by Vincent Bolloré.
(AFP)