As per two sources familiar with the matter at hand, CVC Capital Partners has submitted a non-binding expression of interest for a stake up to 49% in Telecom Italia’s (TIM)  enterprise services arm.

The non-binding approach targets a business of the Italian telecoms group which includes cloud, internet of things (IoT) cybersecurity and connectivity services focused on large corporate clients.

Bestinver, a brokerage house, has placed a valuation of $11.5 billion (10.5 billion euros) on the business, based on core earnings of between 730-760 million euros last year.

According to a source, CVC has proposed divesting some of its stake in the business as part of an ongoing reorganisation.

The newly-created entity under CVC proposal would employ some 6,500 people in Italy out of a total of around 42,000 for TIM in the country, the source added.

($1 = 0.9107 euros)

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Tags: acquisition, bid, cloud, connectivity, corporate clients, CVC Capital Partners, cybersecurity, enterprise services, internet of things, IoT, M&A, mergers, non binding, reorganisation, services, stake, Telecom Italia, TIM, valuation