MILAN (Reuters) – Italy is working to find by the end of the year the best market-friendly options for struggling Telecom Italia (TIM), signaling that a planned bid for the phone group’s landline grid by state lender CDP has been put on hold.
A deadline for CDP to submit its offer, part of a broader project to combine TIM’s network assets with those of smaller rival Open Fiber to create a unified broadband champion under CDP’s control, expires on Wednesday.
Rome aims to kick off talks to set out by Dec. 31 the “best viable market solutions” to maximise the interests of the country, the companies and their shareholders and stakeholders, Industry Minister Adolfo Urso and cabinet undersecretary Alessio Butti said in a statement on Tuesday.
The statement also reiterated that Rome was keen to secure control of TIM’s network.
A government source said Prime Minister Giorgia Meloni had put CDP’s bid on hold.
Marking a break with the past, Meloni on Friday entrusted the government’s broadband strategy to Butti, who has openly criticised CDP’s plans for TIM.
Butti has called instead on Treasury-owned CDP to take over cash-bleeding TIM in full to then sell its service operations, including its Brazil-listed unit.
Economy Minister Giancarlo Giorgetti this month said Butti’s plans required extensive discussions within the government, which had “several options” to secure control of TIM’s network.
TIM, which is expected to hold a board meeting on Wednesday to discuss governance issues, had no immediate comment.
Its shares were down 1% by 0900 GMT, compared with a flat Milan blue chip index.
(Reporting by Angelo Amante, Giuseppe Fonte, Elvira Pollina, editing by Agnieszka Flak, Kirsten Donovan)
