From Breakingviews - Italian telecom network Plan B will be hurdle race
. Telecom Italia’s network, which generates an estimated 2 billion euros of annual EBITDA, may be worth 19 billion euros including debt, analysts say.
Ownership is also an issue. Italian state investor Cassa Depositi e Prestiti , which owns 60% of Open Fiber, wants to control the combined entity. Italy’s competition regulator also won’t approve a merger if Telecom Italia remains in charge. That implies any deal will require a transfer of cash from taxpayers to the private-sector incumbent.
An alternative would be for Telecom Italia to shrink its share of the equity by transferring a large chunk of its 23 billion euros of net debt to the merged company. However, the company’s bondholders, who rely on the cash flow from the network to sustain the company’s debt, may be reluctant to give up control.
Finally, regulators are likely to impose some extra demands before allowing the two companies to create a de facto Italian broadband monopoly. Telecom Italia shares, currently languishing below 30 cents, reflect the fact that a network deal will need to clear several hurdles before reaching the finishing line.
- KKR and Macquarie, which have minority stakes in Telecom Italia’s last-mile network and Open Fiber, respectively, also signed the non-binding memorandum of understanding.- KKR, which in April gave up on its attempt to take over Telecom Italia at 0.5 euros per share, owns 37.5% of Telecom Italia’s FiberCop unit. Macquarie owns 40% of Open Fiber, which is majority-owned by CDP. The state investor also has a 10% stake in Telecom Italia.Register now for FREE unlimited access to Reuters.
日本 最新ニュース, 日本 見出し
Similar News:他のニュース ソースから収集した、これに似たニュース記事を読むこともできます。
Cardi B Shares Shocking Video of Yacht Sinking in Ocean While Vacationing With OffsetWatch Cardi B's shocking footage of a yacht sinking during her Memorial Day weekend vacation.
続きを読む »
Filippini sisters, Vatican mark 350th anniversary of St. Lucy’s birth | Faith MattersSt. Lucy, born in 1672, taught religion to poor Italian girls as her first mission.
続きを読む »
Cannes Film Festival: Olivia DeJonge on Playing Priscilla Presley and Wearing PradaPlaying Priscilla Presley in 'Elvis' was a transformational experience for the actress, who was just 20 when filming began.
続きを読む »
\r\nCharlize James and Kapiolani Coleman bring home state hurdle titlesCharlize James and Kapiolani Coleman bring home state hurdle titles
続きを読む »