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CVC makes non-binding bid for stake in TIM’s enterprise services -sources – Metro US

CVC makes non-binding bid for stake in TIM’s enterprise services -sources

FILE PHOTO: The Tim logo is seen at its headquarters
FILE PHOTO: The Tim logo is seen at its headquarters

MILAN (Reuters) – CVC Capital Partners has submitted a non-binding expression of interest for a stake up to 49% of Telecom Italia’s (TIM) enterprise services arm, two sources said on Saturday.

The non-binding approach targets a business of the Italian telecoms group which includes cloud, internet of things (IoT) cybersecurity and connectivity services focused on large corporate clients.

Broker Bestinver has pegged a valuation of 10.5 billion euros ($11.5 billion) on the business, based on core earnings of between 730-760 million euros last year.

CVC is proposing a carve-out of the business as part of an ongoing group reorganisation, one of the sources said.

The newly-created entity under CVC proposal would employ some 6,500 people in Italy out of a total of around 42,000 for TIM in the country, the source added.

($1 = 0.9107 euros)

(Reporting by Elvira Pollina and Giuseppe Fonte, writing by Giulio Piovaccari, editing by Alexander Smith and Ros Russell)

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