The accounts don’t add up in Tim. The French partner Vivendi he asks and gets the head of the former number one Luigi Gubitosi. Imagine actions of responsibility. But in the meantime, shareholders are willing to pay Tim’s former number one a liquidation from 6.9 million and tune one indemnity. Gubitosi is then relieved by the financial liability of his ordinary work in the company. A particularly important concession given that the company’s results are deteriorating rapidly and the agreement for the company is under discussion A league reached with dazn. Meanwhile, the board has again postponed the judgment on the expression of interest of the American fund Kkr that he would be willing to put on the plate 40 billion to detect the entire group, proceed to separate the network from services of telephony and make the necessary investments for the relaunch. With the restructuring that would follow.
In summary, the situation is particularly delicate. It is of great concern to trade unionists and politicians who fear the possibility of layoffs and social tensions. Not surprisingly, while the Tim’s advice, the leader of the League, Matteo Salvini, asked the government to “watch for avoid clearance sales and stews“. A position in line with that of the Minister of Economic Development, Giancarlo Giorgetti, which, however, so far, despite promises, has not untied the knot of conflict of interest and the role of Cassa Depositi e Prestiti, partner of both Tim and rival Open Fiber. On one point, however, everyone agrees: strategic assets must be protected and special powers (the so-called golden power) are the tool to do this.
So while on the doors of Tim knocks the fund Kkr who would like to replace the French of Vivendi, on Thursday 16 December the telephone company was forced to revise the le earnings forecasts for the current year making investors restless for at least three reasons. The first is that it is the third downward adjustment surprise release in just six months. The second is that the profit alarm would start from board of statutory auditors, following a verification of the Pwc auditor. The reason? For the consulting firm, the management’s estimates on the fruits of the agreement with Dazn for the distribution of Serie A TIM would have been excessively generous (there would be approx 540 million too many). The third is that Tim resized the sales forecast on fixed telephony in Italy: in practice the company had to take note that on its main market i revenues 2021 are likely to drop by 6-7 percent causing a drop in profitability (gross margin) of between 13 and 15 percent. In other words, the former monopolist has had to indirectly admit that he is feeling the pinch of the competition from Open Fiber, controlled by Cassa Depositi e Prestiti.
In this scenario, it is very essential for management to find the right balance on industrial activities. Not surprisingly, the new general manager, Pietro Labriola, immediately undertook to renegotiate the contract with Dazn. For the former monopolist, the goal is to tick one discount of guaranteed minimums by 340 million a year over the next three years. Obviously Dazn doesn’t like the option. With the result that the whole thing is likely to finish with stamped papers. With a lot of necessary millionaire provisions in the balance sheet and legal expenses in account. Option, the latter, which would justify aliability action against former number one Gubitosi. This scenario would severely penalize Tim on the stock market by further compressing the value of the stock which on Friday was worth € 0.44 against € 0.505 proposed by Kkr in its expression of interest.
In the background remains the question of shareholdings. The American fund Kkr has not yet formalized his offer for Tim. But he has made it known that he is willing to shell out 40 billion of which ten for the offer and 30 for the investments necessary for the company to return to being competitive. Vivendi, however, is not prepared to leave the scene. Also because she is convinced that Tim can be worth more than the amount offered by Kkr by separating the network from the telephony services. He aims to be the dominus of Tim’s transformation alongside Cassa Depositi e Prestito. In this way, however, the foundations for a possible one would be laid merger of the network company with its rival Open Fiber, the former premier’s old project Giuseppe Conte. In summary, in the battle for Tim’s conquest, it now seems obvious that whoever wins will then proceed to one difficult renovation and reorganization of over 40 thousand employees of the former monopolist of Italian telephony. Unless the government finds a solution that saves goat and cabbage. But that could be extremely expensive for Italians’ pockets.
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