Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

RPT-UPDATE 1-Italy sets conditions on Macquarie's Open Fiber bid -sources

Published 17/09/2020, 04:13 pm
Updated 17/09/2020, 04:18 pm
© Reuters.

(Repeats story published late on Wednesday, no changes to text)

* Rome warns Macquarie against all Enel 's Open Fiber stake

* Italy must have control of Open Fiber if Enel exits

* Enel CEO Starace met Treasury officials on bid

By Giuseppe Fonte and Stephen Jewkes

ROME/MILAN, Sept 16 (Reuters) - Rome would welcome Macquarie buying a stake in Italy's Open Fiber as long as it fits with plans to form a national broadband champion, sources familiar with the matter said on Wednesday.

Macquarie Infrastructure and Real Assets has bid for all or part of utility Enel's ENEI.MI 50% stake in Open Fiber, which is half-owned by state lender Cassa Depositi e Prestiti (CDP).

The government has told Macquarie it wants the fund to buy less than 50% so that CDP, which has a right of first refusal on any Enel stake sale, can take control, the sources said.

Enel and Macquarie declined to comment.

Italy is trying to broker a deal between Telecom Italia (TIM) TLIT.MI and smaller rival Open Fiber to create a full-fibre network to close a digital divide with Europe.

Last month Rome set out a road map to try and overcome a deadlock between TIM and Open Fiber and create a high-speed network open to all operators and acceptable to regulators. this plan, CDP would become an influential shareholder with vetting powers on strategic issues in the new player. which in June made a non-binding offer valuing Open Fiber at almost 8 billion euros ($9.47 billion) including debt, presented a binding bid on Wednesday, the sources said, adding Enel's board would be informed at a meeting on Thursday.

Enel CEO Francesco Starace met Treasury officials to discuss the bid, one of the sources said.

The bid for a stake of 35-50% envisages several scenarios including possible political considerations, another added.

"There are earn-out clauses promising more cash if certain conditions are met," another source said, adding the deal could be worth anywhere up to the amount of the non-binding offer.

Vodafone VOD.L and WindTre also have a right of first refusal on a combined stake of around 15% in Open Fiber in the event of ownership change. ($1 = 0.8450 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.