Ex-Telstra chief Trujillo lining up EUR7.5bn bid for Telecom Italia stake

26 Sep 2014

Sol Trujillo, the former chief executive of Australia’s Telstra Corp, is seeking to raise as much as EUR7.5 billion euros (USD9.6 billion) to fund a bid for a controlling stake in Telecom Italia (TI), Bloomberg reports, citing people familiar with the matter. As such, Trujillo has discussed the plan with New York-based financial advisers, and sovereign-wealth funds in Qatar and Abu Dhabi are among investors that have expressed interest to date. However, the source noted that Trujillo has not yet approached TI’s board with the proposal, because the plan lacks full funding and he is keen to secure support from Italy’s government before making a move. According to confidential documents seen by Bloomberg, the project has been code-named ‘Adriano’, and will see Trujillo take over as CEO and draft in his own management team. The news agency notes that an investment of EUR7.5 billion would be equivalent to around half of the telco’s market value.

Italy, Telecom Italia (TIM)