The General Manager of Telecom Italia (TIM), who is expected to become the firm’s new CEO, has outlined a draft plan for TIM’s future strategy as an alternative to the EUR10.8 billion (USD12.3 billion) takeover proposed by US investment firm KKR in November. Pietro Labriola’s proposals will be examined by TIM’s board when it meets on 2 March. Reuters reports that he is advocating a split of the telco’s retail and networks businesses, with each assuming a portion of the company’s debt and equity.
The telco has not yet responded to KKR’s offer, but a takeover is looking increasingly less likely, with TIM’s largest shareholder, Vivendi of France, opposing the deal and saying it is undervalued. Labriola is expected to be appointed as TIM CEO on Friday, as he has the support of Vivendi and the Italian government, which holds almost 10% of TIM’s shares.