Telecom Italia investors in discussions about group revamp, PM said

Telecom Italia investors in discussions about group revamp, PM said ...

The main investors, including the Treasury-owned CDP, are discussing a revamp of the ailing former phone monopoly, Italian minister said. They pledged to protect jobs and infrastructure assets at the group.

TIM has been hit by a string of profit warnings which led to a restraining of the market in just two days.

Prime Minister Mario Draghi told reporters at an annual news conference that it wasn't clear what was happening at TIM, and the government hasn't yet put it down.

"The situation is evolving, with a takeover bid to be announced, but his details aren't true", Draghi said.

"The government doesn't know what to say: I want that or that. There's no pre-defined path," he added.

Vivendi, the French media group led by argentine artist Vincent Bollore, is the capital-eclecture of TIM with a close 24% stake, followed by CDP with 10%.

In TIM shares rose about 3% following Draghi's comments. A Milan-based trader said that they were considered a "green light" to the takeover of TIM amid speculation about an improving bid.

At 0.44 euros per share, ZERO has traded below the 0.05 euros offered by KKR.

Having said that such a price did not correspond to a metric price, Vivendi has opened up the first option to give the state control of the fixed network as part of a project run by Italian institutions.

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The government praised the interest of KKR's as "positive news" for Italy, but the leadership vacuum at the TIM has delayed the group's response.

As an alternative, KKR is working on a carve-out of TIM's network, and the building of that to be taken on by the CDP, sources said.

TIM's network, Italy's biggest telecoms infrastructure, is considered strategic by the government, who has special powers to block unwanted interest. In order to ensure that its syllable quality will come to a halt with a government and the mbq.

The minister says he wants to protect three things with the business overhaul: jobs, infrastructure, which means the group's fixed-line network, and... advanced technologies, said the minister.

"The business structure we'll be able to accomplish by a decision that either TIM shareholder or a government, will have to meet those three goals," Draghi said.

KKR already owns 37.5% of TIM's "last-mile" grid after a 1.8 billion euro investment last year.

TIM has not given KKR the ability to view books as requested by the fund before proceeding with a formal bid, and a special committee that commissioned to assess the offer is still considering the process.

After Gubitosi's resignation, TIM promoted Pietro Labriola's senior manager to general manager.

Currently, Labriola is the principal candidate for a position as CEO. But TIM doesn't expect to be appointed a new chief before January, and the search process continues, two other people who are close to this matter said.

1 = 0,848 euros)

The standard is on hand.

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