# TIM shares slide as reported grid bids disappoint
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-04-19
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: TIM Shares Slide as Reported Grid Bids Disappoint
Meta Description: Telecom Italia (TIM) shares drop over 5% due to lower-than-expected bids for landline grid and submarine cable unit Sparkle. Vivendi seeks higher valuation.
URL: https://financedigest.com/tim-shares-slide-as-reported-grid-bids-disappointhtml

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# TIM shares slide as reported grid bids disappoint

ROME/MILAN (Reuters) – Shares in Telecom Italia (TIM) tumbled more than 5% on Wednesday on disappointment at the reported valuation of new offers for its landline grid and submarine cable unit Sparkle.

Analysts voiced concern that the bids fell well short of what leading TIM shareholder Vivendi is seeking and that a swift resolution of the latest effort to reshape the former phone monopoly appeared unlikely.

TIM said late on Tuesday it had received new non-binding bids from both KKR and rival Cassa Depositi e Prestiti (CDP), which is working with Macquarie.

TIM gave no further details, adding its board would review the bids on May 4.

According to two sources close to the matter, Italian state lender CDP and partner Macquarie [offered 19.3 billion](https://www.financedigest.com/g7-offers-9-5-billion-new-aid-for-ukraine-ready-with-more.html "G7 offers .5 billion new aid for Ukraine, ready with more") euros ($21.2 billion) for the assets.

KKR’s bid amounts to 21 [billion euros](https://www.financedigest.com/mercedes-benz-to-buy-back-up-to-4-billion-euros-in-shares-by-2025.html "Mercedes-Benz to buy back up to 4 billion euros in shares by 2025"), including 2 billion euros if certain goals are met, another source close to the matter said.

Both bids were around 1 billion [euros higher than the reported](https://www.financedigest.com/european-governments-spend-half-a-trillion-euros-on-energy-crisis-report.html "European governments spend half a trillion euros on energy crisis – report") initial offers from the rival camps.

Intesa Sanpaolo noted that the bids [remained far from the 31 billion euro](https://www.financedigest.com/euro-zone-credit-growth-remains-brisk-despite-gloomy-outlook.html "Euro zone credit growth remains brisk despite gloomy outlook") figure sought by Vivendi, which is TIM’s top shareholder with 24% of the company.

We [expect another interlocutory period](https://www.financedigest.com/cobalt-sulfate-market-is-expected-to-accelerate-at-a-cagr-of-8-2-over-the-forecast-period-of-2021-2031.html "Cobalt Sulfate Market is expected to accelerate at a CAGR of 8.2% over the forecast period of 2021-2031") with a situation still very fluid in terms of valuation of the asset, antitrust implications and governance issues,” Intesa Sanpaolo said.

TIM wants to [sell its largest asset](https://www.financedigest.com/exclusive-repsol-agrees-to-sell-alberta-oil-assets-to-cppib-backed-teine-energy-sources.html "Exclusive-Repsol agrees to sell Alberta oil assets to CPPIB backed-Teine Energy -sources") as CEO Pietro Labriola seeks to restructure the group, which has a “junk” debt rating and faces a steady revenue decline in its competitive home market.

Banca Akros said in a note the reported improvements on previous bids were limited, adding “the likelihood of a straight [sale is not that high and other options could emerge.”](https://www.financedigest.com/negative-perceptions-about-emergency-contraception-are-likely-to-hamper-the-sales-of.html "Negative perceptions about emergency contraception are likely to hamper the sales of")

TIM shares were down 4.3% at 0810 GMT, having lost as much as 5.7% earlier in the session.

($1 = 0.9114 euro)

(Reporting by Elisa Anzolin, Alessandro Parodi and Giancarlo Navach; Writing by Alvise Armellini and Keith Weir; Editing by Jonathan Oatis and Mark Potter)


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