TIM Extends Deadline for Sparkle Bid to Mid-March
MILAN (Reuters) -Telecom Italia (TIM) <TLIT.MI> has agreed to push back to mid-March a deadline to agree a sale of its subsea cable unit Sparkle to a consortium comprising Italy's Treasury and Spanish fund Asterion, the Italian phone group said on Wednesday.
"The company agreed to an extension until March 15 to allow the finalisation of the preparatory steps for the final decision on the offer," TIM said in a statement, noting the "positive evolution of negotiations."
The Treasury and Asterion filed a 700-million-euro ($729 million) binding offer just before Christmas.
TIM's board was initially expected to take a decision on the offer, which was previously valid until Jan. 27, on Wednesday, two sources with knowledge of the matter had said.
A previous deadline for an exclusivity period had been set for the end of February. This has also been re-set to March 15.
The board was unable to approve a sale of the unit on Wednesday because the bid is reliant on a 600-million-euro financing package from a group of banks which has not yet been finalised, three other people with direct knowledge of the matter told Reuters.
($1 = 0.9603 euros)
(Reporting by Elvira Pollina and Alvise Armellini; Editing by Valentina Za and Gavin Jones)
