The Council of Ministers has approved a decree-law "aimed at guaranteeing financial resources" allowing the State to take a share of up to 20% in the network, Economy Minister Giancarlo Giorgetti announced to the press.
This participation, "of a maximum amount of 2.2 billion euros", will allow "the exercise of special powers and the ability to have an impact, in terms of security strategy, on what we consider to be a decisive infrastructure for the future of the country", he said.
A memorandum of understanding signed in early August with KKR provides that the Ministry of Economy will take a "minority stake" in the future TIM company grouping its fixed network and its submarine cable subsidiary.
The ministry is already a shareholder of Telecom Italia through the 9.81% share held by the Italian Caisse des Dépôts (CDP).
If the operation succeeds, the Italian state will mark its comeback in a group considered strategic, which was privatized in 1997 by Romano Prodi's government.
After months of suspense, TIM had opted at the end of June for the offer of the KKR fund to buy its network, and began exclusive negotiations with it.
KKR's proposal, which under certain conditions amounts to €23 billion, was considered more advantageous than CDP's competing offer, which was around €19.3 billion.
KKR's offer, however, remained well below the expectations of French media giant Vivendi, Telecom Italia's largest shareholder with a 23.75% share, which had estimated the value of the network at 31 billion euros.
Vivendi nevertheless judged that the "direct commitment of the Italian government" was "positive news", and now expects "the opening of a serious dialogue" to "reach concrete and achievable solutions".
A joint offer between Rome and KKR should also involve other Italian investors such as the infrastructure fund F2i. The CDP could also take a share, albeit limited, in the network.
© 2023 AFP