Tim, here are the (opposite) plans of Kkr and Vivendi on the network
Moves and counter-moves by Kkr and Vivendi on the Tim network
It is not just a question of the price of the takeover bid announced by Kkr on Tim that is causing the shareholders of Tim to debate and question the government. There are also and above all questions – all to be examined and resolved – on how to unbundle the fixed network and on the precise perimeter to define strategic the other assets of the Tim group such as the subsidiaries Telecom Italia Sparkle (network of submarine telecommunications cables), Noovle (the company set up with Google for the cloud) and Telsy (cybersecurity).
WHAT IS STRIKING IN TIM AND IN THE ROMAN PALACES ON KKR AND VIVENDI
What is perceived in the environments of the Roman palaces is that the initial dialoguing and not contrary approach of the government to the expression of interest by Kkr does not correspond at the moment both to the acts of Cdp (controlled by the Ministry of Economy and second shareholder of Tim after Vivendi) who, for example, helped to give the de facto welcome to Luigi Gubitosi, who resigned as CEO, believed to be close to the American fund, and to the tight pour parler accredited by journalistic reconstructions among the top management of Cassa Depositi e Prestiti and the French group Vivendi, the largest shareholder of the former Telecom Italia with 23.75%.
HERE IS THE PLAN OF VIVENDI ON THE TIM NETWORK
The pour parler would focus in particular on the future of the network and on the relationship between Tim and Open Fiber. According to journalistic rumors, Vivendi's plan passes from splitting the group into a commercial services company, where the French group could have the majority (in the same way as the current shareholding structure), and into another company in the network that it would become state-owned, but under concession to Telecom.
THE FEARS ABOUT TRADE UNIONS FOR THE EMPLOYEES OF THE NETWORK
This scenario – according to the observers – would allay the fears of the trade unions for the impact on employment given the significant number of employees employed in the network.
WHAT HIS WHISPERED VIVEND
«Vivendi is interested in any solution that promotes the efficiency and infrastructural modernity of the network, while preserving the value of its investment. In this perspective, the hypothesis of state control of the network, if it were a prerequisite for an institutional- led strategic project, will certainly be evaluated with openness, "a spokesman said over the weekend.
THE REASONS FOR NO TO VIVENDI IN KKR
In essence, the plan of the French group stands in sharp contrast to the non-binding offer of Kkr, which puts 50.5 cents per share on the plate.
WHO MUST EARN WITH UNPACKING TELECOM?
"If you make money by unpacking Telecom, then the operation wants to lead Vivendi, who paid for the shares on average € 1.07 – commented Il Sole 24 Ore today – Moreover, he should always deal with Kkr, who has 37 , 5% of FiberCop, the Telecom secondary network company ".
THE DIFFERENCES BETWEEN KKR AND LIVE ON THE NET
Il Sole 24 Ore concludes: “The difference is that the American proposal passes from a takeover bid at an intermediate price, which can be collected immediately, to delist the share and carry out the operation privately. While the French initiative intends to carry out the spin-off of the network with the listed share, involving all the shareholders in the creation of value, if there will be, but in a longer time frame ”.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/tim-ecco-i-piani-opposti-di-kkr-e-vivendi-sulla-rete/ on Tue, 07 Dec 2021 08:05:51 +0000.