The Italy-USA confrontation at Telecom Italia is heating up. “We are open to dialogue with all shareholders, but they should evaluate our plan and possibly present one of their own to the board and the shareholders' meeting”. Thus Tim's CEO, Amos Genish, replied to the American fund Elliott, which on Tuesday announced its intention to reach 6% of Telecom's capital, essentially doubling the current stake and thus exceeding the 5% threshold, the minimum for be able to present a list at the shareholders' meeting. The manager spoke in a conference call with journalists after this morning the group presented the new industrial plan with 9 billion investments by 2020 and the accounts for 2017 - closed with growth - also announcing that the Board of Directors has given the green light to the voluntary spin-off of the network.
[Read also Tim: network separation, new plan and growing accounts]
Genish specified that at the moment "there has been no response" between Elliott and the Telecom board. Among other things, the CEO underlined, the fund's criticisms of the management's work "were expressed before the publication of the industrial plan, released yesterday at 10 am". Genish stressed that Telecom is open to discussions “with all shareholders and also with Elliott. After all, the common goal is to create value. I am willing to sit down with them to understand what they want to change, even if their announcement was an attempt to reach conclusions before the publication of our ambitious and robust plan covering the fundamental pillars. They have to tell us what they want with a plan that they will have to present to the board and in the assembly. For now, I think they haven't had time to look at our plan."
Genish, in line with the comment released yesterday by the chairman, Arnaud de Puyfontaine, added: “We can only welcome all shareholders. We welcome constructive dialogues and will use any feedback to improve the value of the company."
“POSSIBLE DIVIDENDS IN THE NEXT YEARS”
“In the next few years, over the course of the business plan, if the financial guidance is respected, we will be able to consider the detachment of dividends – added Genish – In any case, the payment of dividends in the next few years has neither been discussed or approved by yesterday's board”, in which it was decided that a dividend will be detached for savings shares only.
“JV WITH CANAL+ FROZEN, WE WILL PARTNERSHIP FOR CONTENT”
As for the joint venture with Canal+, “the approval is taking too long and we can't get stuck for long – continued Genish – The joint venture is frozen, then we'll make subsequent assessments. Now the focus is on partnerships for co-productions and content. We are negotiating with various content providers to expand the product offering. Negotiations are underway with several studios, there may be announcements. And we have to see how it will end up with the rights to football matches”.
"THE NET? WE WILL TRY TO ESTABLISH RELATIONS WITH THE NEW GOVERNMENT"
Genish underlined that in recent months the company has managed to weave good relations with the Government and the authorities, but in the end it is "neutral from a political point of view", so it will try to establish good relations also with the new Government which could form. However, “every evolution on the network will be a business decision. Relations with regulators are important and those do not change”.
"ON PERSIDERA POSSIBLE BINDING OFFERS IN THE NEXT DAYS"
The CEO of Telecom Italia confirmed that there are no changes for Persidera, even if everything will also depend on the position of the shareholder Gedi. Genish specified that the Rai Way consortium remains a potential buyer, but also "a new binding offer could be presented in the next few days". In any case, for the Telecom group "Persidera's is a small business".
“NO MERGERS OR ACQUISITIONS IN BRAZIL, FOR NOW”
On the Brazilian side, Genish has left the door open to possible extraordinary operations, but has indicated that the plans for the Carioca subsidiary - at least for now - are stand-alone, also thanks to the fact that the Oi situation will be unblocked in 2019. "Discussions there are options for possible consolidation on the Brazilian market – he said – but this is not the right time. Oi is expected to exit chapter 11 next year. Possible M&A options will be considered, but Tim Brasil has stand-alone growth potential and we must be careful not to jeopardize it”.
“ON INWIT, OPEN TO EVERY POSSIBILITY”
"We are open to any potential possibility on the asset, as long as our strategic presence is preserved", concluded Genish with reference to Inwit.
At the end of the morning, Telecom shares gained 0,9% on the Stock Exchange.
