Shares in Italian telecoms giant TIM
took a tumble in mid-morning trading on Monday after getting off
to a positive start following an extraordinary board meeting on
Sunday and the subsequent confirmation of 2024-2026 guidance and
integration of last Thursday's market communication with data on
expected cash flow.
The share price fell by 7.7% to 0.20 euro, taking it to December
2022 levels.
Earlier it had risen by 2.2% to 0.227 euro after TIM said it
expected "its pro-forma net debt, after the Netco transaction,
to be around 7.5 billion euro at the end of 2024" and "net cash
flow to be around zero in 2025 and around 500 million euro in
2026, normalised to 800 million".
The company also said "any upside to the guidance could derive
from earn-outs connected to the Netco transaction and the
possible sale of Sparkle, the process for which is still
ongoing".
TIM called an extraordinary board meeting on Friday after shares
in the company plummeted 24% on the Milan stock market following
the unanimous approval of its 'Free to Run' 2024-2026 business
plan on Wednesday.
However, on Sunday CEO Pietro Labriola and advisors told the
board that the plan could not be considered responsible for the
crash and could go ahead.
TIM has received backing from the government for the sale of its
landline grid NetCo to American fund KKR as part of efforts down
its debts, which currently add up to around 26 billion euros.
Under the deal that could reach 22 billion euros, the Italian
State is to take a stake of up to 20% in the grid, which is
considered strategic infrastructure.
Italy's largest trades union confederation CGIL has described
the plans as "madness".
"We have said from the outset that the separation and sale of
the network is an error," said Secretary Maurizio Landini on the
sidelines of a peace march in Rome.
"Splitting up the company is madness. It is exactly the opposite
of what is needed," he continued, adding that the move risks
jeopardising a company "that is fundamental for our country".
ALL RIGHTS RESERVED © Copyright ANSA