BT may cut price of Italian unit after lukewarm interest

6 Feb 2019

BT Group may have to cut the price tag of its Italian arm, BT Italia, after experiencing lukewarm interest, Reuters reports, citing sources familiar with the matter. Four bidders are taking part in the second stage of the auction, namely: Telecom Italia (TIM), Retelit, Wind Tre and VueTel, but all parties are said to be assessing the acquisition of selected assets, rather than targeting an outright purchase. Further, indicative bids fell short of BT’s expectations. Vodafone Italy, meanwhile, has walked away from the sale process altogether.

One of the sources told the news agency: ‘There is a disconnect on price and none of the bidders would go crazy to buy this business’, adding that the deal would be a ‘game changer’ for Retelit. The sale is being handled by Credit Suisse, and binding bids are due at the end of March.