HomeJobsMacquarie prepares multibillion-euro bid for Telecom Italia grid

Macquarie prepares multibillion-euro bid for Telecom Italia grid

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Support from the Rome-based government is crucial for any potential investor in Telecom Italia, a former monopoly that’s under pressure to slash debt. State-controlled CDP owns almost 10 per cent of Telecom Italia and has a majority stake in smaller rival Open Fiber.

Italian Prime Minister Giorgia Meloni has signalled she considers Telecom Italia’s network a strategic asset that must remain under public oversight. Italy’s government retains the right to veto deals involving assets deemed to be of strategic value, and Rome’s desire to safeguard the 40,000 jobs at the company means any offer without state backing would face significant hurdles.

The CDP-Macquarie offer meshes with the government’s goal of building a single national network, through a merger of Telecom Italia and Open Fiber, and promises to preserve a strategic asset and accelerate the country’s digitalisation, the people said.

Telecom Italia chief executive Pietro Labriola is seeking to sell the network to cut the company’s net debt of about €20 billion ($31 billion).

Bloomberg

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