Italy is exploring new options for TIM, with Health & Fitness Journal network offering put on hold

©Health & Fitness Journal. FILE PHOTO: The Tim logo is seen at its headquarters in Rome, Italy on November 22, 2021. REUTERS/Yara Nardi/File Photo

MILAN (Health & Fitness Journal) – Italy is working to find the best market-friendly options for Telecom Italia (BIT:) (TIM) by the end of the year, signaling that a proposed offer for the phone group’s fixed line by state lender CDP is on hold been laid.

CDP has a deadline on Wednesday to submit its bid, which is part of a broader project to combine TIM’s network resources with those of smaller competitor Open Fiber to create a unified broadband champion under CDP’s control.

Rome intends to start talks to determine the “best viable market solutions” by December 31 to maximize the interests of the country, companies and their shareholders and stakeholders, Industry Minister Adolfo Urso and Cabinet Secretary Alessio Butti said in a statement on Tuesday.

The statement also reiterated that Rom was interested in gaining control of TIM’s network.

A government source said Prime Minister Giorgia Meloni has put CDP’s offer on hold.

Marking a break with the past, Meloni on Friday entrusted the government’s broadband strategy to Butti, who has openly criticized CDP’s plans for TIM.

Butti has instead asked Treasury-owned CDP to fully take over ailing TIM in order to then sell its service operation, including its Brazilian-listed unit.

Economy Minister Giancarlo Giorgetti said this month Butti’s plans will require extensive discussions within the government, which has “several options” for gaining control of the TIM network.

TIM, which is expected to hold a board meeting Wednesday to discuss governance issues, had no immediate comment.

Its shares are down 1% by 09:00 GMT compared to a flat Milan blue-chip index.