A pretty decent Q3 report from Telecom Italia after last weekend’s approval by the board of KKR’s offer for Netco at c.€19-22bn. We continue to see a minimum fair value for Telecom Italia’s EV at €37.5bn and not the current €35.5bn as, after subtracting NetCo’s EV (as it emerges from the KKR offer), Sparkle and TIM Brazil, ServiceCo (excluding Brazil) deserves to be valued at 3.5x its EBITDA. We maintain our opinion at Buy on the stock.