Rumours of new bid for Telecom Italia's grid push stock up 3%

Future Generation Australia

28/03/2023 08:50

** Telecom Italia  TLIT.MI  rises by as much as 3.4% in
early trade after a Bloomberg report said that state lender
Cassa Depositi e Prestiti (CDP) is planning to increase its
offer for the fixed network of Italy's biggest phone group
    ** Bloomberg said the state lender would be ready to raise
its bid for TIM's grid by 2 billion euros, to around 20 billion
euros ($21.65 billion)
    ** This higher offer "seems more acceptable", a Milan-based
trader says
    ** "There were already rumours on the possibility that CDP
would offer a bit more. Anyway, investors are waiting for
something concrete," the trader adds
    ** With an evaluation of 20 billion euros on its assets
ex-FiberCop, TIM's deleverage would grow to 17.4 billion euros,
Equita says, vs 16.1 billions in the broker's evaluation, with
an impact of about 6 cents on its target price
    ** The stock is up by about 2.3% at 0750 GMT and has gained
more than 35% YTD, as the market continues to react positively
to the bidding race for Telecom's grid


($1 = 0.9240 euros)

 (Reporting by Alessandro Parodi, Giancarlo Navach, editing by
Alvise Armellini)
 ((alessandro.parodi@thomsonreuters.com))