Heard on the Street: There is value in European stock markets, but investors often need muscle to extract it
of the former Italian telephone monopoly’s fixed-line network, FiberCop. Last month, Telecom Italia said KKR had proposed a takeover of the entire company for roughly $38 billion, including debt the new owner would assume. Telecom Italia is now evaluating its options in a drawn-out process likely to test KKR’s patience, but if a deal does emerge it would be the largest ever private-equity buyout of a European company.
For years, Telecom Italia has been a basket case. Excessive debt and dysfunctional governance led it to underinvest in its network, leaving the door open to multiple challengers. KKR could give the company the complete reset it needs. The Italian government, which has the power to block the deal, hasn’t ruled it out: In an end-of-year press conference this week, Prime Minister Mario Draghi merely said that discussions were ongoing.
KKR will need to commit to a big investment program if it wants to own a central part of Italy’s digital infrastructure. But there are also potential returns that don’t rely purely on renewed growth. FiberCop could be spun out of Telecom Italia to improve its valuation and potentially increase leverage; broadband assets are much more popular among investors and lenders than the telecom operators that typically own them.
There are echoes here of private-equity interest in a different sector: British supermarkets. Grocer Wm. Morrison this summer became the subject of a bidding war that
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Russian gas flows eastward via Yamal-Europe pipeline for fifth dayThe Yamal-Europe pipeline that usually sends Russian gas to Western Europe was operating in a reverse mode for a fifth day on Saturday, shipping fuel from Germany to Poland, data from German network operator Gascade showed.
Weiterlesen »
Putin says Nord Stream 2 launch would lower gas prices in EuropeBeginning exports via the Nord Stream 2 pipeline under the Baltic Sea would lead to a reduction in gas prices in Europe, Russian President Vladimir Putin was quoted as saying by local news agencies on Friday.
Weiterlesen »
Putin says Europe only has itself to blame for surging gas pricesThe European Union can only blame its own policies for record gas prices as some of its members resell cheap Russian gas at much higher prices within the bloc, Russian President Vladimir Putin said on Friday.
Weiterlesen »
Russia says Europe missing out on gas with Nord Stream 2 delayEurope, struggling with soaring gas prices, is missing out on additional Russian supplies amid delays to the Nord Stream 2 pipeline, a top Russian official signalled on Friday.
Weiterlesen »
Fading Omicron concerns set up shares for weekly gain, dent dollarStock markets in Europe and Asia cemented gains in light holiday trade on Friday, while the safe-haven dollar eased on signs the Omicron variant would not significantly derail global economic growth.
Weiterlesen »