Bid target Telecom Italia's auditors meet before key board meeting -sources By Reuters

Bid target Telecom Italia’s auditors meet before key board meeting -sources By Reuters

© Reuters. FILE PHOTO: The Tim logo is seen at its headquarters in Rome, Italy November 22, 2021. REUTERS/Yara Nardi/File Photo

MILAN (Reuters) – Telecom Italia (MI:)’s auditors and risk committee will examine its financial health on Thursday ahead of a board meeting which could decide the future of Italy’s biggest phone group and its chief executive, sources told Reuters.

Italy’s former telecoms monopoly has received a 10.8 billion euro ($12 billion) buyout approach from U.S. private equity group KKR in the middle of a boardroom row between CEO Luigi Gubitosi and TIM’s top investor Vivendi (OTC:).

Vivendi is pushing for change at the helm of TIM after two profit warnings since July, partly due to a costly deal with sport streaming service DAZN to screen Italy’s top soccer matches, which failed to boost its revenue.

Auditors will examine TIM’s earnings and discuss whether a third profit warning may be necessary as a result of the DAZN rights deal, Italian newspapers reported.

A third downgrade to TIM’s outlook would further strengthen Vivendi’s hand in seeking a change of CEO.

Gubitosi has close ties with KKR, which last year bought a 37.5% stake in Telecom Italia’s last-mile grid and is seeking to preserve its investment.

Any management reshuffle could complicate KKR plans to pursue its offer, which is conditional on the support of the board and the government’s approval.

Rome, which is TIM’s second largest investor through state-lender CDP, has special anti-takeover powers to shield companies it deems as strategic from foreign bids. So far CDP has opposed any major management changes at TIM, sources have said.

TIM shares were down 5% to 0.4723 euros at 1335 GMT.

($1 = 0.8913 euros)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link