Italy’s TIM tumbles despite presenting debt-cutting plans

Telecom Italia (TIM) plunged more than 9 percent on Monday morning on the Milan Stock Exchange, despite its attempts to reassure investors over its 2024-2026 strategic plan.

After opening higher, Italy’s largest telecoms company fell as much as 9.5 percent to 0.2009 euros, before recovering to being down about 4.3 percent, with the overall market 0.4 percent lower.

The publication of TIM’s three-year strategic plan on Thursday saw its shares plunge by 23.8 percent, before regaining some ground on Friday. The shares remain down 28 percent from the start of the month.

TIM issued a statement before the opening of the markets on Monday saying it intends to reduce its pro-forma net debt to around 7.5 billion euros ($8.25 billion) at the end of 2024, thanks to the sale of its landline network to the American investment fund KKR.

As the sale of the network is not expected to take place before June, it will continue to pay high interest rates, temporarily generating more debt.

TIM held an extraordinary board meeting on Sunday after Thursday’s massive daily fall.

Financial director Adrian Calaza offered to step down, but his resignation was rejected by the board of directors, according to Italian media reports. (BSS/AFP)