Telecom Italia advisers put $31 billion value post-grid deal

Telecom Italia advisers put $31 billion value post-grid deal

Bloomberg: Advisers for Telecom Italia SpA see the troubled phone carrier reaching a total valuation of as much as 27.8 billion euros ($30.6 billion), if its asset separation plan achieves its goal of creating a single fixed-line network in Italy, people familiar with the matter said.

Under this scenario, the Italian carrier would be worth more than twice as much as private-equity firm KKR & Co. offered for the firm in November and over four times its current market value of 5.8 billion euros.

A new strategy announced by Chief Executive Officer Pietro Labriola earlier this month could push the ex-monopolist’s value to 1.3 euros per share if its landline assets are fully separated and then merged with smaller, state-backed Open Fiber SpA, said the people, asking not to be named discussing private deliberations.