Telecom Italia to go ahead with media sale
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Telecom Italia board tells managers to press ahead with sale of TI Media Group, despite ‘negative financial trend’
The board of Telecom Italia has told its management team that it should press ahead with the disposal of the company’s TI Media Group — even though, it hints, the price it can realise for the sale is falling.
The unit owns Italian channel La7 and has 51% of music channel MTV Italia in a joint venture with 49% owner Viacom. It also owns a digital TV broadcasting network.
The company first announced it was preparing to sell TI Media Group in May 2012. In a carefully worded statement the company now says that “received offers ... reflect the negative financial trend of the TI Media Group”, and told managers “to wrap up negotiations in order to receive final and binding offers”.
In December 2012 the main board of Telecom Italia said that it had received two bids for TI Media and gave the management a mandate “to negotiate better conditions in order to present the board with final binding offers”.