(Alliance News) - The MEF is still working on the dossier on the sale of Telecom Italia Spa's network.

On Thursday, as reported by La Repubblica, Treasury Minister Giancarlo Giorgetti and Meloni government chief of staff Gaetano Caputi received Chairman Yannick Bollorè and CEO Arnaud de Puyfontaine at the request of Vivendi, which is TIM's largest shareholder.

"According to financial sources, the French partner in the meeting would again explain to the government his doubts about the sale of the network, reiterating his opposition to a sale of the group's infrastructure, and proposing an alternative industrial solution that would be accompanied by a change of management, but that does not require a capital increase, in the interest of the entire company and its 40,000 employees," reads Repubblica.

For Vivendi, KKR's offer does not do justice to the strategic value of the infrastructure, without solving the debt problem at its root, putting the remaining company and its employees at risk. "This is why the French shareholder is ready to protect its rights in the most appropriate legal venues."

KKR has been working since June 26 together with TIM management to formulate a binding offer by Oct. 15 for Netco, the company that encompasses the primary and secondary network, and Sparkle's undersea cables-which the MEF intends to take over at a later date.

KKR's bid, which is more than EUR20 billion-elevatable to EUR23 billion if certain conditions are met-was settled downstream of extensive due diligence and a shared service contract with TIM, which will continue to lease the infrastructure after the sale.

The legal battle to decide the fate of the network is likely to be long, and with an uncertain outcome, leaving it to a judge to decide on a transaction that mortgages the company's future. Not to mention that the divestment of Netco is in any case subject to the green light from the Antitrust and AgCom, which seems a foregone conclusion but will take time.

https://www.repubblica.it/economia/2023/10/08/news/tim_mef_rete_vivendi-417249120/amp/

By Claudia Cavaliere, Alliance News reporter

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