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The Italian telecoms operator TIM is evaluating the US investment group’s KKR expression of interest in acquiring the full capital stake of the company, a potential 11 billion euro transaction. The proposal was lodged by the US investment fund at a price of €0.505 per share, a 45.7 percent premium over the share’s closing price on Friday.   TIM described KKR’s expression of interest as “friendly,” with the goal of securing approval from TIM’s board and management. Telecom Italia said its board of directors met and addressed the fund’s interest in initiating a prospective public tender, which is subject to a four-week period of due diligence and clearance from the Italian government, that has veto power over the group’s purchase.   Although TIM is a private corporation, because it is considered a strategic asset for Italy, the Italian government has the right to decline any purchase that it believes would…

Telecom Italia (TIM) has inked a deal with the Italian branch of Xavier Niel’s Iliad to co-invest in TIM’s last-mile grid firm FiberCop in order to accelerate the deployment of fiber broadband lines in Italy.   Under the terms of the agreement with TIM, Iliad will co-invest in FiberCop to assist in the development of the network that connects street cabinets to people’s houses. Iliad will receive access to Telecom Italia’s core fiber network, allowing it to provide ultrafast fiber-to-the-home (FTTH) connections to clients.   According to TIM, the agreement validated FiberCop’s investment strategy, which aims to link 75 percent of Italy’s so-called grey and black zones, including cities and industrial districts, with FTTH connections at speeds of more than 1 gigabyte per second by 2025. The agreement’s financial terms were not disclosed.   According to analysts, the FiberCop agreement might help TIM counter some of the heightened competitive pressure…

TIM, also operating under the name Telecom Italia, is the largest Italian telecommunications services provider, offering telephony and mobile services as well as DSL data connectivity. The company has made every effort to maximize coverage in its fibre-optic rollout, bringing ultrabroadband to underserved areas and covering more than 2,000 districts in about 5 months. This increase in infrastructure is a key advancement in Italy’s growing need for connectivity in rural and sparsely populated areas across the country. As a result of this deployment, approximately 65% of households in these areas now have access to a high-speed connection, and in a short period, this initiative has taken an important step in bridging the digital divide in the country that TIM aims to fill by 2021. The fibre network currently covers 86% of the Italian population and it TIM aims to increase this figure to 90% by December, 2020. Although…

The battle over Telecom Italia seems to have to come to an end, as shareholders were called to elect a new board. Telecom Italia’s directors resigned last March. Paul Singer, head of Elliott Management, an activist fund, was successful to get two thirds of the seats. He won the battle over the French conglomerate, Vivendi. Despite only have 9% of the shares, Elliott was able to impose its team over Vivendi that possesses 24% of Telecom Italia. By pointing out the way Vivendi failed shareholder’s interest in Telecom Italia, Singer was able to get a vote in which they had two options. They could either pick up a board composed of ten Italian business personalities selected by Elliott, or keep a team made of Vivendi’s CEO and its employees for the most part. After that loss, Vivendi stated that it would “take all measures necessary to preserve its value and…