The board of the former Telecom Italia decided yesterday that it “favourably acknowledged” the proposal from KKR Infrastructure in association with FiberCop, the unit that owns TIM’s fibre and copper last-mile network.
KKR has offered €1.8 billion for 37.5% of FiberCop on the basis of an enterprise value of approximately €7.7 billion, while Fastweb – owned by Swisscom – will have 4.5% of the share capital of FiberCorp in exchange for the transfer of the 20% currently held in Flash Fiber, said TIM.
The board also decided it wants to speed up a proposal to create a single network. It “will be enthusiastically taking part in the works the government intends to launch over the next few hours”, said the company.
The board gave TIM’s CEO, Luigi Gubitosi (pictured), the responsibility of discussing “all the relevant aspects with the government authorities”, said TIM.
The board will reconvene on 31 August to decide on the results of the meetings with the government.
Meanwhile TIM’s board has confirmed its continued interest in the consortium – with Telefónica’s Vivo and América Móvil’s Claro – to buy Oi, the troubled Brazilian group. They have bid US$2.9 billion, but they are now facing competition from Highline do Brasil, owned by Marc Ganzi’s Colony Capital.
If the TIM-Vivo-Claro offer is accepted, said the TIM board last night, the offer will “make the consortium a stalking horse in the sale process that will follow during the year” – essentially is a bid that is arranged in advance of an auction to act as an effective reserve bid.