State backed Poste Italiane, which became TIM’s largest shareholder last year, launched an 11 billion euro bid in March for the shares it does not already own, aiming to take the telecom group private and create a national digital champion, News.az reports, citing Reuters.
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Some analysts have argued that the offer undervalues TIM and have suggested a higher cash component may be needed to win broader shareholder support.
“It is too early and unfair to say now if the Poste offer has to be increased or not,” Labriola told analysts during a post results conference call.
He added that TIM’s board would issue its opinion on the bid, but shareholders would ultimately make their own assessment. According to a source familiar with the matter, the board is expected to publish its view around August 10.
On a separate earnings call, Poste Chief Financial Officer Camillo Greco defended the proposal, saying the premium offered could reach as much as 50% based on unencumbered average prices. He also noted that TIM shares have climbed around 110% since Poste first invested in the company.
Poste said it still expects to complete the transaction by the end of the third quarter.
Under the terms of the offer, Poste would pay 0.167 euros in cash and 0.0218 newly issued Poste shares for each TIM share tendered.
By late trading on Thursday, TIM shares were trading at around 0.69 euros, slightly above the implied 0.68 euro value of the offer based on Poste’s current share price.
Poste currently owns about 27% of TIM’s ordinary share capital, although that stake is expected to decline toward 20% after TIM converts some special shares into ordinary stock later this month.
