Parties bidding for TIM's grid want more time for talks (updated)

Macquarie Technology

10/10/2022 16:14

(Adds context)
       MILAN, Oct 10 (Reuters) - The potential bidders for
Telecom Italia's (TIM)  TLIT.MI  network assets have asked for
more time for talks given the size of the transaction, Italy's
biggest phone group said on Monday. 
    Italy's state lender CDP is readying a preliminary offer for
TIM's landline grid as it pursues plans to create a single
broadband company with smaller rival Open Fiber, in which it is
the largest shareholder. Macquarie  MAQ.AX , which has a
minority stake in Open Fiber, is also expected to join the bid.
    Under a preliminary agreement sealed in May, CDP and TIM
aimed for a binding deal by the end of October but the process
has been subject to multiple delays and has been further
complicated by Italy's national election last month.
        In a statement on Monday, TIM said that CDP, Macquarie
and Open Fiber had requested an extension of the timeline to
evaluate the information received from TIM.
  
        TIM added that KKR  KKR.N , which owns a minority stake
in its last mile network, was planning to remain aligned with
TIM in the discussions. 
    The parties are set to meet this week, TIM said.
    Valuation issues have also been a stumbling block in
negotiations between TIM and CDP.
        TIM's top investor Vivendi  VIV.PA  is looking for a
valuation of 31 billion euros ($30.06 billion) to back a sale of
the grid with the prospect of a merger with Open Fiber, a source
familiar with the French media group had said.
       CDP values Telecom Italia's landline grid in the region
of 20 billion euros including debt, sources had previously said.
Other sources pointed to a range of 15-18 billion euros.    
($1 = 1.0314 euros)
 (Reporting by Elvira Pollina
Writing by Keith Weir
editing by Agnieszka Flak)
 ((agnieszka.flak@thomsonreuters.com; +39 06 8030 7754;))