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Telecom Italia (B1/B+/BB-) Receives European Approval For Netco Deal

COMMUNICATIONS


  • Telecom Italia’s Netco deal has been approved by the EC without condition, avoiding the need for a lengthy probe.
  • The equity is roughly -2% since Wednesday’s close after reporting results yesterday morning which showed Servco slightly ahead of consensus while Netco EBITDA was slightly behind albeit with continuing negative cash generation for both.
  • TITIM lines earmarked for Servco in the recent debt exchange are up to 5bp tighter today and range from -1bp to +1bp since Wednesday’s close pre-earnings. TITIM lines earmarked for Netco are 1-2bps tighter today but remain 3-5bps wider since Wednesday’s close.

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