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Last Trade - 05/07/19

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Enel expected to kick off process to sell Open Fiber stake -sources

Wed 16th December, 2020 7:51pm
MILAN, Dec 16 (Reuters) - Italian utility Enel  ENEI.MI  is
expected at a board meeting on Thursday to kick off a process to
sell all or part of its stake in fast broadband company Open
Fiber to Australian investment fund Macquarie, three sources
close to the matter said.
    The board is expected to give management a mandate to press
ahead with a deal and give it more time to iron out details, one
of the sources said.
    Enel, which jointly controls Open Fiber with state lender
CDP, received a binding bid from Macquarie in September for its
stake, valuing the whole of the broadband group at about 7.3
billion euros.
    Enel has not committed to a sale of its stake but last month
its chief executive, Francesco Starace, said it was "good to
exit Open Fiber now ... We think we can do it if conditions are
    A sale by Enel of its stake could clear the way for a
government-sponsored plan to merge it with the last-mile grid
unit of Telecom Italia  TLIT.MI  and create a unified network.
    CDP is the second-biggest shareholder in Telecom Italia
behind French media giant Vivendi  VIV.PA .
    Sources have previously said Rome wants Macquarie to buy
less than 50% so that CDP can take control of the operator and
make sure the blueprint for a single network is respected.
    "The idea is Enel sells 40% to Macquarie and the rest to
CDP," one of the sources said.
     CDP has a right of first refusal on the Enel stake in case
of a sale.
    Enel and Macquarie declined to comment.

 (Reporting by Stephen Jewkes, Giuseppe Fonte, Elvira Pollina)
 ((; +39.0266129695; Reuters
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