CDP’s Telecom Italia Bid May Need Competition Fixes, Report Says

Antonio Vanuzzo, Bloomberg News

The TIM logo on a flag above an entrance to the Telecom Italia SpA headquarters building in Rome, Italy, on Monday, May 17, 2021. Telecom Italia report results on Wednesday. , Bloomberg

(Bloomberg) --

Italian state-backed lender Cassa Depositi e Prestiti SpA and Macquarie Group Ltd’s non-binding offer for Telecom Italia SpA’s landline network may add a commitment to dispose of some assets to win approval by European authorities, Il Messaggero reported Saturday.

The Italian government may review the conditions of the bid before the lender’s board meets to finalize an offer, Il Messaggero wrote, without citing where it got the information. CDP could require more time to submit a bid, according to the report.

CDP is the controlling shareholder of Telecom Italia’s smaller rival Open Fiber SpA, with a 60% stake, while Macquarie owns remaining 4O%. To avoid risks of market concentration, the companies may seek to dispose of about 10% of Telecom Italia’s network infrastructure, Il Messaggero said.

Prime Minister Giorgia Meloni is ready to endorse their proposal for the network over a bid by KKR & Co., Bloomberg News reported Friday, citing unidentified people familiar with the matter.

Read more: Italy Said to Endorse State-Lender Bid for Telecom Italia Grid

--With assistance from Daniele Lepido.