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.
Pan Finance is a print journal and news website providing worldwide intelligence on finance, economics and global commerce. Known for our in-depth analysis and opinion pieces from esteemed academics and celebrated professionals; our readership consists of senior decision makers from across the globe.