TIM runs on the Stock Exchange with assistance from Fitch and waiting for a counter-offer for NetCo

TIM runs on the Stock Exchange with assistance from Fitch

(Tiper Stock Exchange) – The TIM stock exchange week ends with optimismthanks to the opening of Fitch for a possible upward revision of the Outlook and to the rumors for one imminent counter offer for Netco, or the company that merges all the infrastructure assets of the former monopolist. The +2.5% recorded today, on a weak day for the European markets and with a clear acceleration in the afternoon at the same time as the release of the rating agency’s opinion, brings the gain from the beginning of the week above 6%. If we consider the performance since the beginning of the year, the increase is more than 43% and positions TIM among the best stocks of the FTSE MIB, as speculation on the possible sale of infrastructure assets attracts the attention of the market.

According to press sources, it should be formalized in the next few days – by CDP and Macquarie – a proposal for the TIM network (NetCo) alternative to that of KKR. The offer should be worth around 23 billion euros (of which 18 billion in cash and 5 billion linked to the future integration with Open Fiber) therefore higher than that of KKR, even if in terms of enterprise value it does not differ much. In fact, rumors say that the US fund has offered 20 billion euros (with 2 billion in earnouts on performance), even if there has been no official communication to that effect.

Second Equity“I scenario remains supportive for TIM“, as ratings ‘appear consistent’ and seen”the interest that clearly emerges on the group’s assets”. Analysts estimate that the KKR offer, based on 18 billion, would bring 4.5 billion of equity for TIM (in addition to deconsolidating debt for 10.9 billion).

The counteroffer should arrive shortly before BoD of 24 Februarywhich the company has already indicated will be the one in which it will evaluate KKR’s proposal and make the necessary decisions.

The step forward by CDP-Macquarie, with the support of the MEF, will not close the game, as a evaluation of the proposals on the basis of their differences. In fact, KKR’s offer is not conditional on the approval of the Antitrust, since it has no issues of European competition, while Cassa and Macquarie will have to deal with the Authority regarding the transfer of Open Fiber. Furthermore, the US fund would need a public entity in the shareholding structure, also considering Sparkle’s strategic role for the Italian government.

However, all this attention from investors and the press must not distract management and employees from pursuing industrial results, CEO Pietro Labriola stated again today in a message to his colleagues. “We stay focused on what depends on us: the results depend on us! The only thing we have to guarantee is to do the best we can”, he said. Of course, “if there is competition on the network that can maximize value, reduce debt and put us all in a position to compete at our bestI think it’s good for everyone.”

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