TIM has received two new bids for its network assets which add €1bn more to its EV although the stock was down by 8% yesterday as the market had expected more. Investing in Telecom Italia remains a high-leverage speculative game as €1bn corresponds to 3% of TI’s EV but 15% of its market cap. We currently prefer to invest in telcos which, like Orange, are entering a virtuous circle of EBITDA growth combined with a capex decline.