KKR, Iliad and other rehearse for bigger roles in this everlasting Italian opera
Earlier this year, TIM’s CEO, Pietro Labriola, announced plans to split the company into a netco and servco, and is now considering various investment and spin-off options to put to Italy’s new government.
Reuters reports KKR is in talks to assume control of Telecom Italia’s fixed network in which the investor already owns a stake. Its attempts to acquire TIM in its entirety earlier this year were rebuffed.
As ever in the Italian market, it’s complicated. TIM had agreed to merge its fixed network, FiberCop, with that of the wholesale broadband provider and competitor Open Fiber but this set aside in November.
Meanwhile, KKR is not the only interested party. Iliad Group, controlled by the French billionaire Xavier Niel, made the Italian market fiercely competitive by launching the discount Free mobile service in the country, duplicating his success in France. Earlier this year Iliad offered to buy Vodafone Italy for €11 billion, which was rejected.
It is thought Niel is still hot on the acquisition trail for Italian assets, although TIM’s majority shareholder, the French media conglomerate Vivendi, will not agree to any fire-sale prices.
And on we go with the longest ever opera buffa, to the detriment of all stakeholders, including of course customers, as it staggers under the weight of €25 billion debt.