Pietro Labriola, the GM of Telecom Italia, reportedly outlined a plan offering alternative options to a near €11 billion takeover bid by KKR in an apparent bid to prepare for a rejection of the deal.
Reuters reported Labriola proposed separating Telecom Italia’s infrastructure assets from its services operations in a plan presented to managers in an informal briefing yesterday (18 January).
Sources stated Telecom Italia’s board was broadly positive on the proposals, with Reuters noting banking group Banca Intesa Sanpaolo believes the plan could free chiefs to reject KKR’s offer.
A finalised plan is set to be presented on 2 March, when the board meets to discuss 2021 earnings.
Labriola looks to be increasing his power at the operator: he is expected to be named as the successor to former CEO Luigi Gubitosi this week, an appointment reportedly backed by Vivendi, Telecom Italia’s largest shareholder.
Telecom Italia is yet to respond to KKR’s offer to take it private, but Italy’s government reportedly insisted it must retain control of the operator’s strategic assets should a takeover progress.
Speculation over Telecom Italia’s future comes as rival Iliad Italia is expected to announce a further shake-up of the market by launching fixed line services.
French newspaper La Tribune reported the company is due to hold a press conference on 25 January, while CEO Benedetto Levi is teasing an imminent “revolution” on Twitter.Subscribe to our daily newsletter Back