Inwit under the lens after the dispute with Fastweb+Vodafone and awaiting Tim's moves

(Il Sole 24 Ore Radiocor) - Heavy session for Inwit (-1.6%) after Fastweb+Vodafone notified the cancellation of the Master Service Agreement (Msa) that regulates relations with the tower company. Stocks have experienced a real debacle in the last period, so much so that they have fallen by 25% since the end of February.

The relationship between Fastweb+Vodafone and Inwit is ending up in red tape, given that on the eve of the event the company defined Fastweb+Vodafone's position as "devoid of legal foundation" and "illegitimate", reiterating that the agreement in place should be valid until 2038, also in light of the "change of control" clause exercised in 2022 that extended the duration to 16 years without the right of withdrawal, "at market conditions" and capable of "creating value for all parties". Hence the decision to take action "in any competent forum". It should be remembered that Fastweb had inherited the contract with Inwit through the acquisition of Vodafone Italia last year, and from there the pressing to renegotiate the agreement had begun. Il Sole 24 Ore reveals that Fastweb+Vodafone would have asked for a cost cut in the order of 70 million euros each per year (out of approximately 400 million in annual service costs), but Inwit would have counter-proposed a discount of 25 million.

Il Sole 24 Ore also reports that Tim would be mobilising for the Inwit dossier. "Over the weekend (availability for Saturday or Sunday is being screened) the board of directors will meet to decide whether, similarly to Fastweb, to terminate the contract with the tower company by next 31 March," expiring in March 2028, the newspaper wrote. According to the article, the dispute between Tim and Inwit also concerns the remaining term of the contract: eight years, according to the company's interpretation and therefore expiring in 2030, or 8+8 years, as claimed by Inwit, which would bring the term to 2038. Tim also appears to have requested compensation of 100 million for costs incurred as a result of the increase in inflation and energy, as well as for penalties related to the provision of services, a request that Inwit is said to have rejected as specious. "Tim's position does not surprise us and we believe that the initiative is part of a negotiating strategy aimed at increasing pressure on Inwit, with the aim of obtaining more favourable economic conditions," commented Equita analysts, who reiterated their recommendation of 'Buy' on Tim (€0.7 price target) and 'Hold' on Inwit (€7 target).