By Elvira Pollina
MILAN (Reuters)-Telecom Italia (TIM)’s auditors and risk committee will investigate the financial situation on Thursday prior to the board of directors, which may determine the future of Italy’s largest telephone group and its chief executive officer. Then two sources told Reuters.
Italy’s former telecommunications monopoly takes a € 10.8 billion ($ 12 billion) buyout approach from US private equity group KKR in the midst of a row of meeting rooms between CEO Luigi Gubitosi and TIM’s top investors. received. Vivendi (PA :).
Vivendi has been warned of two profits since July and has taken command of TIM, a high-value deal with sports streaming service DAZN to screen top Italian football games that have failed to grow profits. Is one of the causes.
According to an Italian newspaper, auditors will investigate TIM’s earnings and discuss whether a third earnings warning is needed as a result of DAZN’s rights transaction.
The third downgrade to TIM’s outlook will further strengthen Vivendi’s call for a CEO change.
Gubitoshi has a close relationship with KKR, which bought a 37.5% stake last year Telecom Italia The last mile grid of (MI :), trying to maintain investment while Italy prepares to spend billions of euros on European recovery funding for broadband deployments.
On Friday, the Board is also expected to decide whether to allow KKR access to the data for the four-week due diligence period it requested before making a binding offer, Said a source. TIM is also expected to appoint an advisor.
Vivendi has only two representatives on TIM’s 15 board of directors, which has a majority of independent directors. The other three independent directors are seen as close to Vivendi.
One seat belongs to the state investor CDP, which holds 10% of the TIM and oversees fixed network assets that are considered to be of strategic national importance.
The Treasury-managed CDP has so far opposed key management changes at TIM, sources said.
Management modifications can complicate KKR’s offer, subject to TIM’s board support and government approval.
“I won’t comment on this while the financial markets are open,” CDP’s new CEO Dario Scannapieco said Thursday when asked if strong institutions would maintain or increase stock holdings. rice field.
TIM shares closed at € 0.4840, down 2.65% on Thursday.
($ 1 = 0.8913 euros)
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Telecom Italia auditors to bid on meet before keyboard meeting-Source: Reuters
Source link Telecom Italia auditors to bid on meet before keyboard meeting-Source: Reuters