Fund could launch takeover on Telecom Italia Media-source

MILAN Thu Jan 17, 2013 4:06am EST

MILAN Jan 17 (Reuters) - A private equity fund that has made a binding offer for Telecom Italia's TV unit could consider a full takeover bid if asked to, but will not increase its offer, a source close to the matter told Reuters on Thursday.

Debt-laden Telecom Italia's board was due to meet on Thursday to decide on the sale of its majority stake in Telecom Italia Media after failing to attract improved bids, raising the prospect that the sale may not go ahead.

Private equity fund Clessidra and media firm Cairo have submitted two binding offers.

A source close to the matter said Clessidra, which is said to have offered 330-380 million euros including debt, would consider launching a full takeover bid for the company, in which Telecom Italia has a 77 percent stake, if requested.

"Clessidra will not change the size of its offer but could be flexible on how the deal is done," the source said.

"A solution could be found in different ways. The ball is in Telecom's court. If they asked for a full takeover bid Clessidra could consider it providing there are no extra costs," the source said.

Telecom Italia Media's shares rose 4.2 percent to 0.16 euros by 0901 GMT after jumping more than 6 percent after the Reuters report. žž (Reporting By Stephen Jewkes, editing by Silvia Aloisi)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.