Telecom Italia shares slide as it edges further away from KKR’s £9bn takeover bid
Telecom Italia shares have fallen for a second day straight today following an internal meeting to revamp the former phone monopoly, signalling that the takeover by the US fund KKR remains up in the air .
General Manager Pietro Labriola reportedly outlined a plan exploring alternative options to KKR’s €10.8bn (£9bn) offer earlier this week, and sources close to the matter said the board of directors’ response had been positive.
However, the ongoing talks have left some investors anxious. “The daily bulletin of events, rumours and scenario permutation, and the combination of uncertainty on management and board orientation along with political interference makes investors understandably nervous,” Banca Akros analysts told Reuters.
The stock has lost around 10 per cent since the beginning of the week, and there is a lingering uncertainty as to whether KKR will act on its takeover proposal, which was first announced in November last year.
The ongoing power struggle within the firm has been a major delay to the group giving a response to KKR, which requested access to company data before making a formal bid.
Labriola’s new three-year standalone plan for Telecom Italia hinges on a separation of the group’s infrastructure assets from its services operations, according to reports from Reuters, opening up the possibility that the board could reject KKR’s non-binding offer.
Labriola is expected to be named chief executive at the end of this week.
Vivendi has criticised KKR’s offer saying it does not sufficiently value the telecoms giant.
The French media group, led by financier Vincent Bollore, has a 24 per cent stake in the company, followed by CDP with 10 per cent.