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Telecom Italia confirms CVC bid for stake in services arm, talks with KKR ongoing -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: This is the Tim logo at Rome’s headquarters, November 22, 2021. REUTERS/Yara Nardi

MILAN (Reuters) – Italian phone group Telecom Italia (MI.) (TIM), Monday’s announcement by CVC Capital Partners that they had submitted a non-binding proposal for a minority share in its enterprise service arm confirmed the information Reuters received on Saturday.

Newly-appointed Chief Executive Pietro Labriola has unveiled plans to split TIM’s service businesses from its domestic fixed network operations to unlock value and pursue M&A deals.

Services would encompass cloud, IoT (Internet of Things), cybersecurity and other connectivity services that are targeted at large corporate clients. According to sources, the CVC approached that division for a stake up to 49%.

A meeting of the TIM board is scheduled for Tuesday, where they will get a first glance at the proposal.

TIM said in the statement that talks were continuing with U.S.-based fund KKR regarding the “attractiveness of, actuality, and deliverability” its 10.8 billion euros non-binding offer to Italy’s largest telephone group.

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