Tag Archives: BROADBAND / CDP (UPDATE 1)

UPDATE 1-Italia wants Open Fiber control in the broadband launch drive – source | Instant News


* CDP will not take any precautions on Open Fiber stock sources

* CDP wants a 10% stake in Open Fiber for source control

* TEAM board including CDP Chairman – source (Records by raising stakes, adding comments, background)

ROMA / MILAN, 22 Feb (Reuters) – Italian state lender Cassa Depositi e Prestiti (CDP) wants to increase its stake in Open Fiber to 60% to take control of the broadband company, sources say, as Rome moves ahead with plans to increase ultra-fast connectivity across the country.

CDP will not exercise its first refusal rights on the 50% utility stake that Enel sells in Open Fiber but wants to increase its own stake to 60%, two sources close to the matter said.

Enel, which co-owns Open Fiber with CDP, is in talks to sell 40% to 50% of the fiber infrastructure group to Australian fund Macquarie in June.

Under the deal, Macquarie will pay 2.65 billion euros ($ 3.2 billion) for a 50% stake, although any final price may fluctuate depending on a series of acquisition clauses.

The source said CDP would relinquish its pre-emption rights but entered into talks to buy a 10% stake in Open Fiber from Enel, and negotiate governing rights with Macquarie to take full control.

Former Italian Economy Minister Roberto Gualtieri has tried to create a full-fiber national network by combining Open Fiber with Italian Telecom (TIM) landline assets.

New Prime Minister Mario Draghi has put digital infrastructure at the heart of his government’s agenda, but he hasn’t clarified whether he intends to implement an integrated network project and under what conditions.

Controlled by the Ministry of Finance, CDP is the second largest shareholder of TIM behind French media giant Vivendi but never holds a board seat.

A third source said on Monday that the list of Telecom Italia candidates to be presented for the new council at the annual general meeting would include CDP Chairman Giovanni Porno Tempini.

TIM will reveal the list on Tuesday. The source said the CDP could summon a new council on Thursday to discuss its support for the list.

Telecom Italia and CDP declined to comment while Enel could not be reached for comment. ($ 1 = 0.8229 euros) (Reporting by Giuseppe Fonte, Stephen Jewkes, Elvira Pollina; Editing by Richard Chang)

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