Italy’s state bank CDP prepares TIM counter-offer with Macquarie newspaper

ROME (Reuters) – Italian state lender Cassa Depositi e Prestiti (CDP) and Australian fund Macquarie are preparing a counter-offer for Telecom Italia’s (TIM) network assets worth around 20 billion euros ($21.46 billion). , reported the newspaper Il Messaggero on Wednesday.

The move would be in response to US investment firm KKR, which last week submitted its own bid for the same Telecom Italia (TIM) asset, also reportedly worth around €20 billion.

Il Messaggero said CDP will submit 60% of the offer and Macquarie the remaining 40%. She reported that the offer was being prepared with the help of Credit Suisse, BofA Merrill Lynch and the law firm BonelliErede.

The newspaper also said CDP chief Dario Scannapieco had met with Italian economy minister Giancarlo Giorgetti to agree on a move consistent with the government’s goal of placing TIM’s network under public scrutiny.

Sources close to the matter told Reuters on Tuesday that CDP was looking for banks to help fund its bid for TIM’s network assets, but a source said CDP would likely only bid with Macquarie .

CDP is TIM’s second-largest shareholder after France’s Vivendi, but also controls Open Fiber, which has competing fiber network infrastructure that would be combined with TIM’s assets.

Macquarie is already a minority investor in Open Fiber and has been involved for months in a plan to combine the two network infrastructures.

The spin-off and cession of control of TIM’s valuable fixed line network is a key part of TIM CEO Pietro Labriola’s strategy to reduce the group’s €25.5 billion debt and fund much-needed investments to upgrade the infrastructure from copper to fiber finance.

($1 = 0.9319 euros)

(Writing by Alvise Armellini, Editing by Gavin Jones)

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