Telecom Italia plans network valuation of at least 25 billion euros – sources

The Telecom Italia (TIM) logo is seen in this illustration taken May 3, 2022. REUTERS/Dado Ruvic/Illustration

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MILAN, July 5 (Reuters) – Telecom Italia (TIM) (TLIT.MI) is seeking a valuation of at least 25 billion euros ($26 billion), including its network debt, as part of of a plan to separate its fixed telephony assets from its services branch, two sources familiar with the matter said.

The price is closer to the €31 billion figure sought by TIM’s largest shareholder, Vivendi, in any potential network deal than initial estimates provided by two sources consistent with analysts’ estimates. Read more

In May, sources told Reuters that TIM had begun considering a valuation of around 20 billion euros, including debt and before any synergies, as part of a possible network deal. Read more

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The former telephone monopoly could sell its nationwide fixed access network and submarine cable unit Sparkle as part of a government-sponsored scheme to create a unified broadband company with its state-backed rival , Open Fiber.

The valuation is a key issue in ongoing talks with state lender CDP to combine TIM’s network with Open Fiber, which is majority-owned by CDP.

CDP is also the second largest investor in TIM.

TIM’s board will meet on Wednesday to discuss a business plan centered on separating its fixed network assets from its services business. ($1 = 0.9707 euros)

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Reporting by Elvira Pollina; Editing Valentina Za, Alexandra Hudson

Our standards: The Thomson Reuters Trust Principles.

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