Tim, the market believes in the relaunch of Kkr and in Piazza Affari the stock returns to green
There bag believes in hypothesis of relaunch of Kkr compared to the evaluation presented to the board of directors last weekend and makes the Tim shares despite the denials from the American fund. The prices, which yesterday had suffered a setback after the + 30% on Monday, rose by more than 9% to 0.4693 euros. Waiting for the board of directors of Tim scheduled for Friday, i rumors about Kkr’s willingness to already raise the proposal to convince the first shareholder Vivendi to consider the offer have rekindled purchases: second Bloomberg, on the bidder’s side, a proposal between 70 and 90 cents per share would be assumed.
The first shareholder of Tim, Vivendi, which has the securities in charge at 83 cents, has currently judged the offer of 50.5 cents per share to be “insufficient”. According to sources consulted by Radiocor, however, the fund remains concentrated on the first, and only, proposal presented to the board of directors. At the moment the expression of interest of Kkr has not formally received any feedback from the board of Tim which did not open to the request of Kkr a 4-week due diligence to refine the proposal. As reported by The sun 24 hours, the board of directors of Tim, together with the proposal, it received the restructuring fund plan with separation of the network infrastructure from the services and with a road map to bring the network to completion under the hat of Cdp.
“This hypothesis seems more credible to us than rumors that hypothesize an intervention on the ex-ante network (separation before the takeover bid) or an acceleration on the single network project. Kkr in fact, it would maintain full exposure to the infrastructure asset, the primary focus of the fund, guaranteeing the necessary investments in the coming years and then offering a path that points to the single network, with timing consistent with the complex review of the European regulator “, underlines Equita Sim, adding that the critical point “is to verify whether the offer will have the approval of the board of directors”.
For Bestinver a takeover bid of 70-80 cents would risk jeopardizing returns for Kkr which at that point should leverage either on a regulatory scheme for the network that is very favorable in terms of remuneration or in a high price to sell Tim Brasil: for this the broker, who has a valuation of 62 cents on Tim, suggests to potential investors to exploit the weakness movements of the stock in the 43-45 cents area. In recent days, Intermonte, while assigning a Tim a valuation of 55 cents per share, had gone so far as to assign a potential upside of up to 85-90 cents to the stock to incorporate the creation of value from future initiatives such as single network synergies, data center enhancement and M&A in Brazil even if, underlined the investment house, Kkr it should recognize in its offer price only part of the potential to guarantee itself a profit margin sufficient to justify the operation.
#Tim #stock #market #betting #rise #Kkr #unions #exit #CEO