Telecom Italia GM outlines plans

Telecom Italia (TIM) General Manager Pietro Labriola presented his draft plan to rebuild the former phone monopoly to the company’s directors on Tuesday, as an alternative to a takeover approach by US hedge fund KKR.

TIM, which is expected to name Labriola CEO on Friday, has yet to respond to KKR’s non-binding €10.8 billion (US$12.28 billion) offer, which is contingent on TIM’s board and the Italian government’s approval.

Labriola’s final plan, which the board will review on March 2 when it meets to discuss full-year results, will serve as a baseline for TIM to assess KKR’s Nov 19 proposal price of €0.505 per share.

TIM shares slumped 3.2 per cent on Tuesday, outperforming a 0.8 per cent decrease in the all-share index, as investors questioned if KKR’s tender bid would be accepted.