LONDON, June 23 (Reuters Breakingviews) - Telecom Italia (TLIT.MI) is moving ahead with the long-awaited sale of its grid.
The 5.5 billion euro Italian group has entered exclusive talks with private equity powerhouse KKR (KKR.N), and wants a binding offer by Sept. 30.
Vivendi however is valuing the NetCo at 31 billion euros.
A 26 billion euro price tag would imply an EV/EBITDA multiple of 14 times.
That’s almost three times that of Vodafone (VOD.L) or Telefonica (TEF.MC), assuming the grid’s EBITDA at 1.8 billion euros, according to Barclays estimates.
Persons:
Pietro Labriola, Il Messaggero, That’s, – Labriola, Pamela Barbaglia, Pierre Briancon, Oliver Taslic
Organizations:
Reuters, Telecom, KKR, Vivendi, hardball, Telecom Italia’s, Vodafone, Telefonica, Barclays, Twitter, Intel, Thomson
Locations:
Rome, York, French