Telecom Italia received a non-binding proposal from CVC Capital Partners for a minority stake in a new enterprise services unit that is due to be created under proposals put forward by CEO Pietro Labriola (pictured).
Earlier this year, Labriola outlined a plan to separate the Italian operator into two units, a move that would involve splitting infrastructure assets from services operations. According to a statement from the operator, CVC is interested in buying a stake in the latter unit, which would comprise Telecom Italia’s enterprise division in addition to Noovle, Olivetti, Telsy and Trust Technologies.
Citing unidentified sources, Reuters reported that CVC is looking to buy a 49 per cent stake in the services arm. Telecom Italia’s board is expected to have a first look at the proposal during a meeting on Tuesday.
KKR still in play
The group also confirmed in the statement that discussions with KKR on “the attractiveness, actuality and deliverability” of the US investor’s €10.8 billion offer are ongoing.
Telecom Italia has also indicated it will explore a possible tie-up with state-backed company Open Fiber, reviving a long-standing plan to create a single fibre network company in Italy following an internal revamp.
KKR, which already owns 37.5 per cent of Telecom Italia’s FiberCop fixed-line business, is said to remain keen on buying more shares in the operator and also reportedly wants to discuss the implications of an Open Fiber merger.
According to Reuters, the US investor still intends to carry out due diligence before deciding on its next move, but has narrowed the scope of the information it requires.Subscribe to our daily newsletter Back