# Italy’s CDP and partners ask TIM for more time for network deal Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-11 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: CDP asks for more time to buy Telecom Italia's network assets Meta Description: Italian state lender CDP and partners request an extension to finalize a deal to acquire Telecom Italia's network assets, further delaying broadband URL: https://financedigest.com/italys-cdp-and-partners-ask-tim-for-more-time-for-network-dealhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-10t193535z2lynxmpei990tvrtroptp4italy-broadband-extension-1736815055884-compressed.jpg) By Elvira Pollina MILAN (Reuters) -Italian state lender CDP and its partners have asked for more time to clinch a deal to buy Telecom Italia’s (TIM) network assets, TIM said on Monday, further delaying a project to create a unified broadband champion. CDP’s multi-billion bid is part of a long-held plan to combine TIM’s fixed network assets with those of state-backed rival Open Fiber to create a single national network operator under CDP control. The potential network sale is also a key plank of the strategy set out by TIM Chief Executive Pietro Labriola to turn around the debt-laden former phone monopoly, whose stock is [trading at record](https://www.financedigest.com/red-box-and-bloomberg-partner-to-provide-comprehensive-record-keeping-and-trade-reconstruction-services-for-financial-compliance.html "Red Box and Bloomberg Partner to Provide Comprehensive Record Keeping and Trade Reconstruction Services for Financial Compliance") lows. Under a preliminary agreement sealed in May and sponsored by Italy’s outgoing government, CDP and TIM had aimed for a binding [deal by the end of October](https://www.financedigest.com/citi-halted-financing-for-trafiguras-nickel-deals-in-october-bloomberg.html "Citi halted financing for Trafigura’s nickel deals in October – Bloomberg"). CDP, which holds a 10% stake in TIM, controls Open Fiber. The [agreement was signed](https://www.financedigest.com/japan-uk-to-sign-reciprocal-access-agreement-for-military-officers-yomiuri.html "Japan, UK to sign reciprocal access agreement for military officers -Yomiuri") also by infrastructure funds Macquarie and KKR, which hold minority stakes in Open Fiber and TIM’s last-mile network respectively. But the initial timeline for a non-binding bid has been subject to multiple delays and negotiations have been further complicated by Italy’s [national snap election](https://www.financedigest.com/quebecs-elected-officials-must-swear-oath-to-king-charles-to-sit-in-national-assembly.html "Quebec’s elected officials must swear oath to King Charles to sit in National Assembly") last month. MORE TIME CDP, Macquarie and Open Fiber’s request for more time to clinch a [deal came in light](https://www.financedigest.com/oil-trios-northern-lights-in-yara-co2-emissions-storage-deal.html "Oil trio’s Northern Lights in Yara CO2 emissions storage deal") of “the magnitude of the transaction and … to analyse all the information received from TIM,” [Telecom Italia](https://www.financedigest.com/telecom-italia-in-talks-with-unions-on-up-to-2000-job-cuts-in-italy.html "Telecom Italia in talks with unions on up to 2,000 job cuts in Italy") said in a statement on Monday. [KKR plans](https://www.financedigest.com/german-space-firm-ohb-plans-to-delist-as-kkr-takes-minority-stake.html "German space firm OHB plans to delist as KKR takes minority stake") to remain aligned with TIM in the discussions, TIM said, adding the parties will meet this week. Valuation issues have been a central part of negotiations. TIM’s [top investor](https://www.financedigest.com/top-ten-biggest-mistakes-by-novice-investors-and-how-to-avoid-them.html "TOP TEN BIGGEST MISTAKES BY NOVICE INVESTORS – AND HOW TO AVOID THEM") Vivendi is looking for a price tag of 31 billion euros ($30.13 billion) to back a sale of the grid with the prospect of a merger with Open Fiber, a source familiar with the French media group had said. CDP values [Telecom Italia’s landline grid](https://www.financedigest.com/telecom-italia-boosted-by-rival-offer-for-landline-grid.html "Telecom Italia boosted by rival offer for landline grid") in the region of 20 billion euros including debt, sources had previously said. Other sources pointed to a valuation range of 15-18 [billion euros](https://www.financedigest.com/telecoms-group-orange-signs-sustainability-linked-refinancing-of-6-billion-euros-syndicated-credit-facility.html "Telecoms group Orange signs sustainability-linked refinancing of 6 billion euros syndicated credit facility"). Political uncertainty further complicated matters. Nationalist party Brothers of Italy, which led the right-wing bloc that won the Sept. 25 election, backs the creation of a unified network champion. However, a party [official has called on CDP to pursue the plan](https://www.financedigest.com/australias-nuclear-submarine-plan-to-cost-up-to-245-billion-by-2055-defence-official.html "Australia’s nuclear submarine plan to cost up to 5 billion by 2055 -defence official") by taking over TIM, a move he argues would be cheaper for the state lender and offer more protection to TIM’s domestic workforce of more than 40,000. Giorgia Meloni, the [head of Brothers of Italy](https://www.financedigest.com/italy-names-former-treasury-official-to-head-ita-airways.html "Italy names former Treasury official to head ITA Airways") likely to become prime minister this month, has declined to give a specific view on CDP’s existing plans before taking office. Any move on the single network [plan has been frozen in wait for the new government,” a person](https://www.financedigest.com/best-guide-to-build-a-personal-financial-plan.html "Best Guide to Build a Personal Financial Plan") familiar with the matter said. ($1 = 1.0290 euros) (Reporting by Elvira Pollina; editing by Agnieszka Flak, Keith Weir and Richard Chang) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---