London-based investment firm Merlyn Advisors and a former Telecom Italia (TIM) TLIT.MI executive challenged on Friday the group’s plan to sell its landline network, proposing another solution, according to a letter seen by Reuters.
This challenge comes after the American fund KKR
KKR.N has submitted a binding offer for the TIM network which values it at around 23 billion euros, taking into account debt and certain variable elements.
The letter, signed by Merlyn Advisors founder Alessandro Barnaba, a former JPMorgan banker, and Stefano Siragusa, a former TIM deputy chief executive, is dated October 27 and addressed to TIM’s board of directors.
Under the proposed alternative plan, TIM would retain all of its fixed network businesses as well as its digital services and cloud computing units, while selling off its domestic retail operations and its highly prized Brazilian unit.
Merlyn Advisors represents a group of investors owning in aggregate less than 3% — the regulatory disclosure threshold — of TIM, whether through direct ownership or attorney power, according to the letter.
TIM was not immediately available for comment.