The international arm of Telecom Italia had managed to stay out of on-going wrangles group wrangles so far
Reuters reports that the Italian government wants to bring Sparkle back into state control.
The plan emerged after the government started talks last week with leading TIM investors Vivendi and state lender Cassa Depositi e Prestiti (CDP) to identify “the best market-friendly options” for the phone group by the end of the year.
TIM also gained a prominent new board member in the form of Massimo Sarmi, the head of the national telecoms lobby, two other sources said.
Sarmi’s appointment was originally promoted by Vivendi but latterly was endorsed by Giancarlo Giorgetti, the Minister for the Economy. The two are said to be close.
Sarmi could help scupper the plans of TIM’s CEO, Pietro Labriola, the central plank of which was to sell its national network to CDP to create a single network champion, bringing its smaller broadband unit, Open Fiber, into the fold with it.
This has got tangled up in issues about valuation and regulation and was parked on the back burner by the government in November.
Sarmi, is said to be connected to ruling centre-right party in power. He is not a fan of the single network plan, wanting the government to address the fundamental problems that bedevil TIM first.
Prime Minister Giorgia Meloni’s administration is trying to gain control of TIM’s fixed network to create a wholesale-only player to boost broadband roll-out and speeds for Italians.
All that glisters…
Now it seems the new government wants Sparkle in state hands because of sensitivity of the data it carries, apparently, oh yes, and to raise money from it.
Sparkle is 100% owned by TIM. It manages half a million kilometers of undersea fibre cables stretching between countries in Europe, the Mediterranean and the Americas.
Industry sources indicate Sparkle is worth almost €1 billion.
Meanwhile, back with Labriola
Labriola meanwhile has had meetings with representatives of Global Infrastructure Partners to discuss potential investment in its broadband infrastructure.
KKR already owns a stake in TIM’s local loop network. Its attempt to acquire control of TIM was rebuffed earlier this year, but it is still interested in gaining a tighter grip on the fibre broadband infrastructure.
The government owns what the Brits call a golden share, meaning that it can approve or veto any transaction. Apparently there will be at least three more government-sponsored meetings with TIM’s stakeholders this week.