Telecom Italia shares rise after second bid for fixed phone network

By: News Team

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Telecom Italia shares rise after second bid for fixed phone network

Telecom Italia (BIT:TLIT(TIM) rose as much as 5% on Monday after Italian state investor CDP and Australian fund Macquarie submitted a joint bid for the former telephone monopoly network, rivaling a proposal from US company KKR (NYSE:KKR)

TIM is betting on a total divestment of its most precious asset to reduce its debt of 25,000 million euros and finance a restructuring of the group, lacking income.

Both bids value TIM’s network, which is Italy’s main telecommunications infrastructure, at around 18 billion euros, sources familiar with the matter told Reuters.

At 08:15 a.m., TIM’s shares were up 4 percent at 0.32 euros, beating the Italian benchmark by 0.5 percent, with a Milan-based trader saying competing bids always encouraged investors.

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