Better, but probably not enough. The new offers for netco, the company's network Telecom Italy, rise in value but remain below those 20 billion identified by many as the minimum threshold to receive the green light from the Tim board of directors, convened for May 4th.
Il first raise for netco, which brings together the primary infrastructure, the secondary infrastructure of Fibercop (of which Kkr has 37,5%) and the submarine cables of Sparkle, arrived from Cassa Depositi e Loans Equity, jointly with Macquarie Asset Management, and is an improvement on the proposal presented on 5 March: the new structured offer, expiring on 31 May, is worth approximately 19,3 billion, including a series of earn outs (of which 200 million on the network and another 200 on Sparkle), paid only upon the occurrence of certain conditions.
In the new proposal Cdp Sparkle has a new role
This new CDP proposal would be done 100% loaded with Sparkle, and would share with the Australian Macquarie fund the purchase of the Tim primary and secondary network, with the aim of interweaving it with that of the rival Open Fiber (60% of the shares in the hands of Cdp and 40% in Macquarie). In this way, it would give life to single network, net of any adjustments that the EU Antitrust could impose on the group.
The operation also aims at the shutdown of the copper network and the migration to a single fiber network, capable of bringing Italy into the digital age. Financial sources, reported by Repubblica, report that the CDP offer protects current employment and would bring just under 17 billion into Tim's coffers.
The relaunch of Kkr: 19 billion, plus a possible earn out of 2 billion
The second proposal arrived late yesterday evening from the US fund Kkr, revising its non-binding offer and putting a billion more than before on the table: 19 billion to which would be added a earn out of 2 billion in the event that CDP and Macquarie decide to participate in the project, conferring Open Fiber and giving life to the single network.
The offers will now have to go through the examination of the BoD scheduled for May 4th. But before then there will be the other highlight for Tim: theshareholders' meeting tomorrow 20 April in which, among the various points, the remuneration policy will also be examined, with salaries and bonuses for management, including CEO Pietro Labriola, on which Vivendi has publicly expressed its criticisms and announced its vote against. This translates into a difficult transition, especially if between now and 4 May Tim's board of directors judges the offers unsatisfactory, aligning itself, in this case, with the valuation of the first shareholder Vivendi who had already indicated 31 billion since the summer the floor for any discussion (with the possibility, according to rumors, of not falling below 26 billion).
