Telecom Italia soars on the Milan stock exchange after KKR’s purchase offer

The share of Telelecom Italia (TIM) soared on Monday on the Milan stock exchange with a rise of more than 27% after the public offer of purchase by the US fund KKR, which shook the telecommunications sector in Europe.

The investment fund proposal, which values ​​the company at about 11 billion euros ($ 12.41 billion), caused a notable rise in the stock on Monday.

The title gained more than 27% towards noon, up to 0.44 euros.

The French group Vivendi, TIM’s main shareholder with more than 23% of the shares, earned 2.31% at the same time, reaching 11.31 euros on the Paris stock exchange.

KKR’s offer, at 0.505 euros per share, values ​​the Italian company at about 11 billion euros.

This is a “friendly” takeover bid (OPA) that was examined on Sunday by TIM’s board of directors and is subject to exhaustive checks on the accounts, which should last around four weeks.

The approval must also have the authorization of the competent authorities, that is, the Italian government, which has the possibility of blocking the operation due to the strategic nature of the company.

On Sunday, the Italian Economy Ministry announced that it was “closely following developments” and that it created a specialized “working group” to monitor the matter.

KKR owns 37.5% of FiberCop, the company TIM created with Italian internet service provider Fastweb, responsible for installing fiber optics throughout Italy.

The Italian newspaper La Repubblica maintains on Monday that the government led by Mario Draghi was informed before the KKR offer, unveiled on Sunday.

The government delegated several competent personalities, both from the Ministry of Economy and Finance, to follow the case.

The government’s objective is to maintain the strategic character of the company and preserve employment, press sources indicated.

The offer has been launched at a difficult time for Telecom Italia, which has suffered in recent years from tough internal competition.

The operator recorded the drop in revenues and profits in the third quarter, below market forecasts, and lowered its estimates for the year.

ljm / kv / mb

Reference-www.nacion.com

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