Telecom Italia (TIM) said its board of directors has agreed to give newly-appointed CEO Pietro Labriola a mandate to “explore strategic options to maximise shareholder value”, referring above all to the possibility of spinning off the company’s fixed infrastructure assets. Labriola was last week confirmed as TIM’s fifth chief executive in six years, replacing Luigi Gubitosi who resigned in November after losing the backing of leading shareholders Vivendi and state investor CDP.
The new CEO has already submitted a 2022-2024 industrial plan to directors that reportedly proposed separating the company’s fixed network assets from its services business. In its statement, TIM said Labriola “underscored the need to guarantee a stable, long-lasting growth outlook for the network infrastructure, in the interest of all stakeholders," adding that the board will examine the plan on 02 March at its full-year results meeting.
The company also said Labriola highlighted the need to focus on enterprise services such as cloud, Internet of Things and cybersecurity. In addition, it confirmed that an ad-hoc committee is continuing to evaluate the non-binding takeover offer from US investment fund KKR, which TIM has yet to reply to and which will be “compared with the group’s outlook and strategic alternatives.”
KKR offered EUR 10.8 billion for 100 percent of TIM’s shares (EUR 33 billion including debt) but its bid is dependent on receiving support from TIM’s board and the Italian government, which has anti-takeover powers to protect companies considered of strategic importance. Vivendi was previously said to be working with CDP on a plan to revive TIM that does not rely on KKR, whose offer it considers insufficient.
Earlier this month, CDP called on the company to revive a plan to merge its fixed network assets with those of fibre-optic rival Open Fiber, which is 60 percent owned by the state lender, a move that may lessen KKR’s chances of taking control.
