Schneider Electric Expands Youth Partnership with Enactus to Drive Inclusive Energy Transition in Egypt    China's Jiangsu Zhengyong to build $85m factory in Egypt's Ain Sokhna: SCZONE    Egyptian pound ticks up vs. US dollar at Thursday's close    Egypt condemns Israeli plan to build 3,400 settler homes in West Bank    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Egypt, Namibia explore closer pharmaceutical cooperation    Egypt, China ink $1bn agreement for Sailun tire plant in SCZONE    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egypt's Electricity Minister discusses progress on Greece power link    Egypt's FM discusses Gaza, bilateral ties in calls with Saudi, South African counterparts    Egypt prepares to tackle seasonal air pollution in Nile Delta    27 Western countries issue joint call for unimpeded aid access to Gaza    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Colombia discuss medical support for Palestinians injured in Gaza    Australia to recognise Palestinian state in September, New Zealand to decide    Egypt, Huawei explore healthcare digital transformation cooperation    Global matcha market to surpass $7bn by 2030: Nutrition expert    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt, Uganda strengthen water cooperation, address Nile governance    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Korean Cultural Centre in Cairo launches folk painting workshop    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Telecom Italia spurns Egyptian tycoon to go solo
The heavily indebted Italian firm rejects a $3.9 billion investment offer from Naguib Sawiris, says will pursue offers from other bidders
Published in Ahram Online on 08 - 12 - 2012

Telecom Italia on Thursday rejected a 3 billion euro ($3.9 billion) investment offer from Egyptian tycoon Naguib Sawiris and will take more time to consider the possible sale of a stake in its copper network.
The heavily indebtedcompanysaid in a statement that its board had decided "not to proceed further" with regards to an expression of interest from Sawiris, who had proposed to invest capital to engineer a strategic turnaround.
After an eight-hour meeting of the group's board, it asked management to further investigate a possible sale of a stake in its copper network to state fund Cassa Depositi e Prestiti (CDP).
The biggest obstacle to an agreement with the CDP appears to be the valuation of the network and the governance of the new company to be set up to manage the infrastructure, people familiar with the situation have said.
The company also said it wanted to continue negotiations with the two bidders for its loss-making television unit Telecom Italia Media to extract a better price.
In its statement, Telecom Italia did not mention any decision about a possible expansion inBrazil, a major source of growth in recent years. The company had looked at a possible purchase of Vivendi's broadband unit GVT.
Sawiris was prepared to pay market prices - or around 0.70 euros per share - as part of a capital increase to help Telecom Italia pay down debt and bid for GVT.
Telecom Italia's top investors value their stakes on their books at 1.50 euros per share after several writedowns.
Shares in Telecom Italia fell 1.74 per cent to 0.7065 euros on Thursday before the announcement, underperforming a lower market, giving the company a market capitalization of about 13.5 billion euros.
The stock has slumped 70 per cent since Spanish competitor Telefonica and Italian financial groups Mediobanca, Intesa Sanpaolo and Generali together bought a controlling 22.4 per cent stake in Telecom Italia in the spring of 2007.
"WORK IN PROGRESS"
After months of contacts between Telecom Italia and CDP, the board's decision on the fixed-line network, possibly worth up to 15 billion euros, marks the start of formal negotiations for a possible stake sale.
Chairman Franco Bernabe had previously said that a decision on whether to go ahead with a separation of the network into a new company would be taken by year-end.
"The negotiations are serious, let's see where they will lead to. It's work in progress," a source close to the board told Reuters. The source did not want to be named.
The Italian government is keen for Telecom Italia to sell to the CDP a 30 per cent stake in the copper network that connects homes and businesses to the phone network and the Internet.
That would raise cash that could be used to invest in a faster fiber broadband much-needed by Italiancompanies. Europe's fourth-largesteconomyhas long been an Internet laggard, its creaky networks stunting the development of online commerce and banking.
A sale of a stake in the network could also accelerate the group's debt-cutting.
Squeezed between the need to paydividendsto its controlling shareholders and keep a lid on its 29.5 billion euros of debt, Telecom Italia has struggled to invest in its home network or expand in growth markets like Latin America.
French operator Vivendi has put its Brazilian unit GVT up for sale. Telecom Italia, which already owns successful mobile unit TIM Participacoes inBrazil, has not presented an offer as the price tag is too high.
Telecom Italia has made debt-cutting a priority since late 2008, reducing net debt by more than 4 billion euros.


Clic here to read the story from its source.