Telecom Italia S.p.A.
Thesis
Telecom Italia is well-positioned to benefit from the consolidation of the European and Brazilian telecom industries. With its significant ownership of TIM Participações, it is a strategic asset that could attract M&A interest, especially as the market consolidates and improves network quality.
Did it work?
The consolidation/M&A thesis appears to have played out: Telecom Italia attracted sustained M&A interest (Iliad's approaches and KKR's takeover offer, which ultimately resulted in KKR taking the company private in 2024), and the group also monetized its strategic network assets via the sale of its fixed-network business (NetCo) to Swisscom, consistent with the 'strategic asset in a consolidating market' framing. However, no price performance is available and the pitch date is unknown, so the return component of the thesis cannot be verified, keeping confidence low.