(Gruppo Tim) Shares of Telecom Italia rose up to 10% on Monday before retreating after announcing that it will go for a domestic broadband deal.
The stock was boosted by an announcement that TIM would support a plan raised by its new CEO Pietro Labriola, for a tie-up with state-backed broadband rival Open Fiber. The Open Fiber merger is expected to boost TIM’S shares by 1 euro.
Labriola also plans to separate TIM’s services arm from its infrastructure assets, which will ease a combination of the company’s network with Open Fiber.
Telecom Italia said that it will also continue engaging in talks with KKR over its 10.8 billion euro or $12 billion takeover bid.
Following the announced move, Exane BNP Paribas analysts say the KKR potential offer for Telecom Italia hangs in the balance.TLIT: MI is currently up 5.23%, KKR: NYSE is down -0.27%
