TIM keeps on rallying on rumours of potential CDP-led takeover

Macquarie Technology

03/11/2022 12:20

** Shares in Telecom Italia  TLIT.MI  rise as much as 5.2%
on renewed rumours of a potential takeover sponsored by Italy's
new right-wing government
    ** The former phone monopoly has been rallying since Nov. 1,
when the market started betting on the potential deal
    ** The company's CEO on Wednesday met a top aide of new
Italian prime minister, according to sources, while La Stampa
daily on Thursday wrote of a potential offer by a CDP-led
consortium including Vivendi  VIV.PA , KKR  KKR.N  and Macquarie
 MAQ.AX  to take the group private
    ** If confirmed, the presence of French telecom giant
Vivendi in the consortium would signal an important step forward
in the takeover process, Equita says
    ** However, a Milan-based trader advises on the side of
caution, saying the stock is moving based on unverified reports 
    ** The stock, which on Oct. 13 touched its historical lows
of 1.627 euros per share, has dropped about 50% YTD
    ** By around 1205 GMT it gains 3.1%, over-performing Italy's
blue-chip index  .FTMIB , which falls 0.8% 
($1 = 1.0266 euros)
 (Reporting by Alessandro Parodi and Claudia Cristoferi)
 ((alessandro.parodi@thomsonreuters.com))