The American fund has launched a public purchase offer on all shares of the telephone company, at € 0.505 each. The stock goes up on the stock exchange and the Mef comments positively on the operation, but some voices say they are worried about what could happen. The CGIL secretary: “In telecommunications necessary industrial plan”. Former Prime Minister Conte: “Keep your guard up”. Other funds affected
The American fund Kkr presented Tim with an expression of interest on a friendly public purchase offer – not binding for now – on 100% of the shares of the telephone company, at € 0.505 each. The proposal has already produced its effects on the stock market: in the pre-opening auction the Gubitosi company recorded an increase of 15.4%, at the opening the theoretical gain is 31% and Tim immediately ends up in the volatility auction where it marks an increase 22.8% to 0.42 euros. The stock, on Friday 19 November, had closed up by 3.65% at 0.34 euros. Tim’s first shareholder Vivendi, the unions and some politicians are watching developments carefully.
The surprise offer did not appeal to representatives of Vivendi, Tim’s largest shareholder, with 23.8% ownership of the shares. The French company reiterated that it is “a long-term investor in Telecom Italia”, recalling “its willingness and willingness to collaborate with the Italian authorities and public institutions for Tim’s long-term success”.
Mef: “Positive news for the country”
Vivendi’s concern does not seem, for the moment, to find an edge between the institutions. The Ministry of Economy and Finance commented on Kkr’s proposal as “positive news for the country”. If the operation were to materialize, reads a note from the Mef, “it will be the market in the first place to evaluate the solidity of the project.” It will be a working group composed of experts and government representatives to follow the dossier, starting from Economy Minister Daniele Franco and Vittorio Colao for the Digital Transition, up to the Minister of Economic Development Giancarlo Giorgetti and the Undersecretary to the Prime Minister Roberto Garofoli.
Landini: “The government does not suffer from market logic”
The CGIL secretary Maurizio Landini does not look favorably on the operation according to which “in a strategic sector such as that of telecommunications the Italian state must act and cannot simply suffer the logic of the market”, as he said in an interview with Republic. Landini supports the need for “an industrial plan aimed at the construction of the single network without excluding the use of golden power, if the Kkr project were to be in contrast with the industrial and employment interest of the country”. The CGIL secretary recalled how for some time “the trade unions have been asking for the establishment of a single network and a unique and competitive national champion capable of defending and qualifying employment”. Hence the proposal to establish “a National Agency for industrial development and to channel all the funds for investments in the various sectors, including those provided for in the budget law, into a single large special fund for industrial transition “.
Conte: “Keep your guard up”
It is not only Vivendi and the CGIL who are doubtful about Kkr’s offer. Former Prime Minister Giuseppe Conte warns the government, asking to keep “the guard very high, ensuring the best protection of national interests and assets that represent a backbone of the country’s growth, development and technological progress”.
Interest from other funds
Meanwhile, other funds have also made it known that they have an interest in Tim. The global private equity companies Advent and Cvc have expressed their openness to dialogue with all the shareholders of the telecommunications company to transparently identify a system solution for its industrial strengthening. On the plate, Kohlberg Kravis Roberts & Co for its part puts € 0.505 per share and is satisfied with 51% of both categories of shares, ordinary and savings, but aims at 100% to proceed with the delisting: it means valuing the company 11 billion euro, or 45% more than the capitalization at the close of the stock market last Friday.