Telecom Italia approves US fund's bid for network

ROME - Telecom Italia on Sunday approved an offer by US investment fund KKR for its fixed-line network, infuriating its main shareholder which vowed to contest the "illegal" decision.

The Italian telecommunications operator is seeking to sell its fixed network to pare down a huge debt pile that stands at more than 26 billion euros ($28-billion).

TIM said its board had approved the deal, whose value could reach 22 billion euros and which would reduce the debt by "around 14 billion euros".

Its main shareholder, French media giant Vivendi, has opposed selling the network and valued it at 31 billion euros, saying KKR's previous bids were far too low.

Vivendi said it would "use all legal means at its disposal" to contest TIM's "illegal" decision.

It had previously threatened to launch legal action if the KKR offer was approved without being submitted to an extraordinary general assembly of shareholders, where Vivendi would carry considerable weight.

"The rights of Telecom Italia shareholders are being trampled on," Vivendi added.

TIM chief executive Pietro Labriola welcomed the board's "historic decision" and said he remained open to dialogue, particularly with the "biggest shareholders".

The Italian government is already the second-largest shareholder in TIM, which was privatised in 1997.

Prime Minister Giorgia Meloni's government intends to take a stake of up to 20 percent in the fixed-line network, viewing it as strategic infrastructure.

After months of suspense, TIM's board in June approved the start of exclusive negotiations with KKR.

The board rejected a lower offer from the Italian Caisse des Depots and Australian fund Macquarie Asset Management, worth around 19.3 billion euros.

If the deal goes through, TIM will become the first major operator in Europe to sell its fixed network on its domestic market to slash debt.The debt load is hampering TIM's efforts to invest in rolling out fibre optic networks, where Italy is lagging behind other advanced economies.Telecom Italia approves US fund's bid for network

Read More........ → November 07, 2023

Disney to complete takeover of Hulu with $8.6bn deal

NEW YORK - The Walt Disney Company announced it will buy Comcast's $8.6-billion stake in Hulu, completing its takeover of the streaming service.

The acquisition will "further Disney's streaming objectives," the company said in a press release, and comes as it strives to boost subscriber numbers at its Disney+ streaming service.

The deal values Hulu at $27.5-billion in total, according to Disney, which said the transaction will be concluded by December 1.

The California-based entertainment giant already sells Hulu as part of bundled offerings with its Disney+ and ESPN+ platforms.

An ad-subsidized bundle of the three services is priced at $15 monthly in the United States, with an ad-free version costing $25 per month.

The company will release its latest quarterly earnings next week, providing a look at how its cable and streaming services are doing in the fiercely competitive market.

Disney in August reported that Disney+ lost more than 10 million subscribers in the recently ended quarter, in large part in the Indian market.

Disney+ finished the second three months of this year with 146.1 million subscribers, compared with just shy of 158 million in the prior quarter, the group said.

Disney rival Netflix last month said subscriber numbers grew nearly 11 percent to 247 million as it cracked down on password sharing and refined an ad-supported tier.The leading streaming service increased prices on some of its plans, perhaps creating an opportunity for competitors such as Disney.Disney to complete takeover of Hulu with $8.6bn deal

Read More........ → November 04, 2023

Bank of England set to hold interest rate

LONDON - The Bank of England was expected to keep its interest rate on hold for a second successive meeting, as Britain battles stubbornly high inflation and weak economic growth.

The BoE announces its decision and latest economic forecasts at midday following a regular policy meeting amid a lingering UK cost-of-living crisis as oil prices rally on the Israel-Hamas war.

On Wednesday, the Federal Reserve left US interest rates at a 22-year high for a second straight meeting as it moved to slow stubborn inflation without damaging the strong US economy. In a widely expected decision, the Fed kept the benchmark lending rate between 5.25 percent and 5.50 percent.

The BoE's rate stands at 5.25 percent -- the highest level in more than 15 years. It paused at its last meeting in September, snapping 14 straight hikes.

The European Central Bank last week left eurozone borrowing costs unchanged after raising them in each of its previous 10 meetings."Several central banks... have reached the point where they are likely hoping that rates have peaked -- but they are simultaneously wary that sticky inflation could force them to take further action," Rabobank analyst Jane Foley told AFP. Bank of England set to hold interest rate

Read More........ → November 03, 2023