Friday , May 14 2021

Alarm to Tim, Vivendi blames Elliott



Telecom moves to Piazza Affari, -4.83% at a price of 51 cents, the day after the first nine months of the year, due to the devaluation of the fixed network for 2 billion, ended with a loss of around 800 million , 2 billion profits without budgeting). And the target ratio of debt and gross margin is 2.7 times, which will go to position 3. In short, it will not even hit a kind of profit warning that will weigh the increased competition on the mobile with the arrival of the Iliad. from 28 to 30 days and higher interest rates. Parameters that, according to Tim, could still worsen.

The discontent of the first partner Vivendi, which represents 23.9%, is not delayed. "The results show the company's overall disorganization and the failure of the new government – Vivendi said – are particularly worried about Tim's low level of stock that reflects the deterioration of results over the industrial plan."

The French also disagree with the Council's decision not to convene the Convention to proceed with the renewal of the auditors to be appointed at the next meeting in April. "The directors of Elliott's list put the company at risk because the appointment should have been made for several months," Vivendi said. In a lengthy videoconference with analysts, Amos Genish reiterated that the third quarter was turbulent on the market. While the impairment is stated, "the impairment test was conducted after applying the new accounting standards: the devaluation of the domestic business responds to the deterioration of market dynamics but it is not cash and does not change the strategic priorities of the plan in which we plan to remain loyal. The targets will be reviewed at the beginning of 2019, but – it ensures – that the plan will continue to reflect increased measures to ensure a clear reduction in debt and a free increase in the cash flow of own resources. "

On the other hand, as far as the secession of the network is concerned, the process is continuing as, as advertising continued, "the government's interest in the issue has diminished even if discussions with Agcom remain." Analysts, however, increasingly assume a future in the name of a "approach" to Open Fiber. According to Mediobanca Securities, which confirms the excess of the crisis and the target price of € 0.93, twice the current one, the decrease in goodwill could be positive if it read along with the news of open talks with Open Fiber , which could be the starting point for broader cooperation ". For Fidentis, therefore, "in good prices and industrial conditions, a merger between Telecom and Open Fiber would be good news." Fidentis also assesses the results of the third quarter in line with market expectations. Among the measures that could be taken to address the extent of the depreciation, the board could freeze the payment of the dividend in savings stocks, which would be paid next year as the accounts would no longer be red. Finally, Brazil is considered a strategy and Genish continues to meditate on the possible acquisition of Nextel.


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