TIM CEO opens door to alternatives as deadline looms
TIM has given its new CEO Pietro Labriola a mandate to explore strategic alternatives as it ponders KKR’s $12.18 billion bid ahead of a board meeting on March 2.
It has now emerged that the telco would be open to a spin-off of its infrastructure assets as it looks to explore options to create value for shareholders.
A split of TIM’s operations would pave the way for a merger of TIM’s infrastructure assets with state-owned rival Open Fiber, according to a Reuters report.
This move has been advocated by state investor CDP, which owns 60% of Open Fiber and 10% of TIM.
No other telco has completed a split of its network from services, but amid growing frustration from TIM’s largest shareholder Vivendi at the KKR bid, a divide has become increasingly likely.
Labriola was appointed as CEO earlier this week as he continues work on a plan that will be examined by the TIM board on March 2 and will provide a benchmark for TIM to evaluate KKR’s approach.
The new CEO has been working on the new three-year plan since he was initially appointed as general manager in November.
Labriola has highlighted the need to pursue a transformation process of the offering and services for the consumer segment and to focus on enterprise services such as Cloud, IoT and cybersecurity.
TIM said that the new CEO underscored the need to guarantee a “stable, long-lasting growth outlook for the network infrastructure in the interest of all stakeholders”.