TIM May Gain Up to 75% of FiberCop Benefits from Open Fiber Tie‑Up Deal
Potential Impact of Open Fiber and FiberCop Commercial Agreement
MILAN, May 7 (Reuters) - Any commercial tie‑up between Italian telecoms network operators Open Fiber and FiberCop would entitle Telecom Italia (TIM) to an additional payment of up to 75% of the benefits accruing to FiberCop from the deal, TIM’s chief executive said on Thursday.
Background of the Negotiations
The owners of FiberCop and Open Fiber are discussing the terms of a possible commercial deal to complete the country's high-speed broadband rollout, Reuters reported last month.
FiberCop Ownership and Recent Sale
Telecom Italia sold FiberCop, which manages Italy's main landline network, to a KKR-led consortium in 2024 in a 19-billion-euro ($22.36 billion) deal, to cut the phone group's debt pile.
Terms of the Agreement
Under the term of the agreement, Telecom Italia would be entitled to an additional payment of up to 2.5 billion euros if a tie-up is completed by the end of 2026.
Executive Commentary
Challenges in Completing a Full Merger
"If they are trying to do a full merger it is quite difficult to think they are able to close it by December 31", Telecom Italia Chief Executive Pietro Labriola told analysts during a post-earnings call.
Potential Benefits for TIM
Synergy Payments
"If they sign a commercial agreement, TIM will get up to 75% of the synergies FiberCop generates from that deal", Labriola added.
Additional Information
($1 = 0.8499 euros)
(Reporting by Elvira Pollina, editing by Alvise Armellini)
