The Italian government may invest up to €2 billion ($2.12 billion) in Telecom Italia SpA’s network unit to retain oversight over the asset, Sole 24 Ore reported, without saying where it got the information.
(Bloomberg) — The Italian government may invest up to €2 billion ($2.12 billion) in Telecom Italia SpA’s network unit to retain oversight over the asset, Sole 24 Ore reported, without saying where it got the information.
Italy’s finance ministry could seek to buy a 20% stake in the phone carrier’s grid, a strategic asset that has been at the center of months of talks over its sale, according to the report. A decision on the matter has not yet been taken and the investment is just an option, Sole 24 Ore said.
Telecom Italia Chief Executive Officer Pietro Labriola is seeking to sell the network to cut the company’s gross debt of more than €30 billion, but months of drawn-out talks over how to structure the deal are continuing.
Earlier this month, KKR & Co. made a non-binding bid for a stake in the asset, and Telecom Italia said it remains open to other offers for the network unit.
The Italian government led by Prime Minister Giorgia Meloni has said it wants to retain control over the assets, which it sees as strategic, but it has not yet outlined its final view on the deal.
Telecom has been holding talks for months with Cassa Depositi e Prestiti SpA — the Italian government’s financial arm — about a sale that could eventually involve a merger of the network with smaller state-backed rival Open Fiber SpA. Cassa Depositi owns about 10% of Telecom Italia and controls Open Fiber.
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