FT lets Wind go

19 March 2003

It looks as if Enel has persuaded France Telecom to sell its 26% stake in their telecoms joint venture for around E1.5bn. This makes sense for both sides. The price is generous but not mad, and FT’s involvement in Wind has passed its sellby date.

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France Telecom is planning to sell its 27% stake in Italian telecoms company Wind to the other shareholder, Enel, for about its book value of E1.6bn, according to a report in Corriere della Sera. The board of Wind is due to meet on Thursday. A person familiar with the situation told Breakingviews that Enel was likely to pay slightly less than the E1.6bn price suggested by the report.

Wind is Italy's third mobile telecoms operator and its firstplaced alternative fixedline carrier.

Since this story was written on 19 March, Enel has announced that it will pay E1.3bn in cash and take on E0.2bn of shareholder loans in return for FT's 27% stake in Wind. The price is subject to a lkater adjustment should Enel sell shares in Wind at a higher valuation before the end of 2004.

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