Italia present Standalone Plan while KKR Hovers

Telecom Italia (TLIT.MI) (TIM) will this week set out its opportunity to a 10.8 billion euro ($12 billion) takeover via way of means of USA fund KKR and additionally submit bleak annual outcome with a purpose to underline the challenging situations that it faces.

Under stress from stiff opposition on its domestic turf, the debt-laden former phone monopoly, which in January appointed its 5th govt in six years, has warned on its 2021 profits 3 times, maximum lately in December.

Analysts predict that post-lease core revenues will decline 11% annually, accelerating to more than 23% in the fourth quarter, according to a consensus compiled by the company. Domestic sales are expected to decline by 2.9% in 2021.

The impact was significantly reduced by the tax change that boosted TIM's revenue by € 5.9 billion in 2020. Milan-based broker Akros has calculated that TIM could cost € 4 billion as a result.

Instead, attention is focused on new CEO Pietro Labriola, who announces TIM's independent plans, which have been overshadowed by KKR's approach since November last year. His strategy in 2022-2024 is expected to focus on the division of TIM's assets and operations.

A special committee within TIM is expected to vote on KKR's approach by mid-March after investors and markets have the opportunity to digest Labriola's plans. Vivendi believes that the price of € 0.505  is too low due to the proper evaluation of TIM.