Vivendi ups price tag for TIM landline network

Vivendi wants €31 billion from the sale of TIM’s landline network, a new report has said.

The Italian telco is currently exploring a deal to sell its landline network, and has agreed a preliminary deal for its fixed network assets with its second biggest investor CDP. At the time, it was reported that TIM valued the landline network at €15-20 billion including debt but news out of France could complicate a sale.

According to sources cited by Reuters, Vivendi has set a €31 billion price tag for the landline network with the landline grid carrying at least €10 billion of TIM’s debt in the event of a split from its services arm.

The Italian operator’s CEO Pietro Labriola has been charged with a plan to revamp TIM’s operations and reduce its debts, and this is centred on separating its wholesale fixed network operations from its services business. This plan will be presented to shareholders on July 7.

The sources noted that, following a split, Vivendi would focus on the services business and has ruled out a sale.

US investment firm KKR, which holds a stake in TIM’s last-mile network, offered €33 billion for the entirety of TIM in 2021, but this bid was rejected.