Stop by Matteo Renzi to any new privatizations and in particular to the further sale of shares in Eni capital.
“If you ask me if we need to privatize ENI, I'll say no. On the privatizations of public companies, I would say that we have done enough, I would even say too much in recent years”, said the secretary of the Democratic Party, Matteo Renzi, in an interview with the Agorà program on Rai 3. The Ministry of Economy and Finance has the de facto control in Eni by virtue of the investment held both directly and through Cassa Depositi e Prestiti. The State currently holds 30,1% of the capital: 25,76% through CDP and 4,34% through the Ministry of Economy and Finance.
During the programme, looking more generally at the privatizations already carried out, Renzi was asked by the interviewer to indicate a privatization that he would not have done and which, in his opinion, went badly. This is the answer: "Definitely the Telecom affair at the time of President D'Alema".
The privatization of Telecom Italia took place in 1997, twenty years ago. Since then, the Italian group has not had peace. In 1999 the manager Roberto Colaninno launched his takeover of Telecom at the head of a handful of investors (the "Po Valley" race of Chicco Gnutti and friends) and the "hard nut" of the initial investors quickly dissolved. Subsequently, in the summer of 2001, it was Marco Tronchetti Provera who conquered control, then in 2007 Telco arrived (Assicurazioni Generali, Banca Intesa and Mediobanca, flanked by the Spanish Telefonica). After various vicissitudes, Telefonica decides to disengage in 2014 and opens the door to the advance of Vivendi which takes 24% of the shares in 2016 and in fact controls what was once the Italian telecommunications battleship.
Between shareholder changes, manager turnarounds and sales, Telecom Italia's capitalization was reduced to 3 billion 576 million at 0,58 euros per share. In 99 Colaninno had launched his takeover, the "mother of all privatizations", offering 11,5 euros per share.
Today Telecom is confronted with a new redundancy plan which provides for up to 7.500 voluntary exits against 2.000 hires to promote the process of digitalisation of the company and of the offer to the public.
(Updated at 12,32 on Tuesday 6 February):
Tim Brazil, a subsidiary of Telecom Italia, released 4Q 2017 data on Monday evening. Profits are on the rise and the quarter's performance exceeded analysts' expectations.
Total revenues, the note communicates, equal to 4,257 billion reals (1 real = 0,247 euros), grew by 5,3% compared to the same period of the previous year. Normalized EBITDA also increased on an annual basis (+13,3%) which in 4Q settled at 1,769 billion real: growth attributable to a series of factors such as, for example, the increase in revenues linked to mobile services and fixed service, as well as obviously efficient cost control. The profit in 4Q 2017 amounted to 604 million real (+66% compared to 4Q 2016) while the profit for the full year 2017 amounted to 1,235 billion real (+64,5% compared to 2016).
On Renzi and D'Alema everyone can have the ideas they believe but the facts are facts. Three points in question:
1) Is it true or not that, after the privatisation, Telecom Italia began to derail following the takeover bid promoted by the "brave captains" of Colaninno and Gnutti which the then prime minister D'Alema endorsed and advocated even at the cost of mortifying Treasury and Bank of Italy?
2) Is it true or not that the debts incurred by private individuals to finance the takeover bid were discharged onto the innocent Telecom, which still pays the price today?
3) As for the acceleration of the ultra-broadband fiber network, is it true or not that it is a driver of the country's modernization that can help Italy make up for its delays in this matter?
Great Renzi, the blackbird who tells the crow he is black. In fact, the great idea of squandering millions of public euros to bring fiber optics to many cities already covered by the broadband service didn't come from the great Matteo…… how disgusting!!!!!!!