Apax, Others Eye Telecom Italia Greek Unit - Source"
MILAN -(Dow Jones)- Private equity firm Apax Partners (APX.YY) is among parties interested in buying Telecom Italia SpA's (TI) 81% stake in Greek mobile operator TIM Hellas (TIMHY), a person familiar with the situation told Dow Jones Newswires Thursday.
An Apax spokeswoman would neither confirm nor deny the matter.
The source said Telecom Italia has received several expressions of interest for its Greek mobile business and "would consider an offer if the price was right."
Goldman Sachs wrote Thursday in an investor's note that "at current market prices Telecom Italia's stake (in TIM Hellas) is worth EUR1.1 billion."
After successfully buying out minorities of its mobile unit Telecom Italia Mobile SpA (TIM.MI), Telecom Italia needs to reduce its debt, which, with the EUR14 billion buyout, increased to EUR44 billion, from EUR32 billion at the end of September 2004.
Goldman wrote in its note that "Telecom Italia has very few other assets (on top of TIM Hellas) it could realistically sell if management decided it needed to take extra steps to reduce leverage."
The U.S. bank wouldn't therefore rule this possibility out, even though it described any potential decision to exit Greece as "an unusual move and would make for the rare sight of a big group exiting a profitable mobile venture in an attractive market."
Telecom Italia has often said that its core markets are Turkey, Brazil, Argentina and that it wants to strengthen its presence there as much as in France and Germany, where it only operates broadband activities.
Consistent with this focus the former telecommunications monopoly has recently sold its 55% stake in the Chilean operator Entel SA (ENTEL.SN) for $934 million to the Chilean holding Almendral SA (ALMENDRAL.SN).
Other Telecom Italia's assets potentially for sale are in Bolivia and Peru.
At 1210 GMT Telecom Italia's shares were down EUR0.02 at EUR3.04.
-By Serena Saitto, Dow Jones Newswires; +390258219907, serena.saitto@dowjones.com
(END) Dow Jones Newswires"
Posted to the site on 17th February 2005
