The single network, or the possibility of combining the networks of Tim and Open Fiber, takes a step forward. Tim, at the request of Consob, announced that it had started negotiations with CDP Equity, OF's majority shareholder, aimed at integrating the two networks.
The step was widely expected and Tim's press release only confirms what is in the logic of things after the presentation of the new business plan by CEO Pietro Labriola. The press release released by the former monopolist of national telecommunications is clear:
“Tim, at the request of Consob, specifies that today he signed a privacy agreement with CDP Equity in order to initiate preliminary discussions regarding the possible integration of the Tim network with the Open Fiber network, in which CDP Equity holds 60% of the share capital.
Tim press release, April 2, 2022
The agreement signed today is functional to start negotiations with the aim of reaching the stipulation indicatively by 30 April of a memorandum of understanding (memorandum of understanding) aimed at defining the objectives, perimeter, structure and main evaluation criteria and parameters relating to the integration project”.
The strategy of aiming for a single network between Tim, owner of the access network partly in fiber and partly in copper, and Of - the company that is cabling Italy entirely in FTTH optical fiber - is shared by the government which companies have always paid close attention to the offer received from the American fund KKR for a goose on Tim at 0,505 euros per share. Dario Scannapieco, CEO of CDP, also recently commented positively on the merger of the two networks.
Tim's CEO, Pietro Labriola, on the other hand presented an industrial plan which precisely provides for the separation of Tim into two distinct entities: a Netco for the network and a Servco - in turn organized into two units, one for businesses , the other for consumers as well as custodian of mobile assets. The operational project of the reorganization which will sanction the end of the vertically integrated operator model, will be presented by 30 June.
With the formalization of the start of the negotiations for the single network, the project presented by the Kkr fund which presented a non-binding offer for the implementation of a takeover bid aimed at the subsequent delisting of Tim and the "unpacking" of the group. A proposal not appreciated by Vivendi, Tim's reference shareholder, which instead approved – together with the other Tim shareholders, including Cdp – the Labriola plan which therefore seems to make everyone agree as indeed the Stock Exchange had for days sensed: seeing the takeover bid move away, and Tim shares closed on Friday at 32,2 cents.
At this point, there are two relevant appointments: Tim's assembly next week. The response from the KKR fund to the request for more information made by Tim's board of directors is expected in a more short time, which has not yet given the go-ahead to the due diligence requested by the Americans.
