Deals
Telecom Italia Falls as New Grid Offers Look Underwhelming
- New offers below valuation set by top shareholder Vivendi
- Shares tumble in Milan after bids sweetened only slightly
The headquarters of Telecom Italia SpA in Rozzano, Italy.
Photographer: Francesca Volpi/BloombergThis article is for subscribers only.
Telecom Italia SpA, the Italian phone carrier that’s shedding assets to cut debt, plunged in Milan trading after it received new offers for its landline network that were only slightly higher than previous bids.
“The two offers, however slightly better than the previous ones, are even below the ‘psychological’ threshold of €20 billion (earnout excluded) and therefore way below Vivendi’s expectations,” Bestinver wrote in a note to clients, referring to the carrier’s biggest shareholder Vivendi SE.