Tim, opa Kkr and golden power: what it is, what government can do

The Kkr fund aims at Tim, it is ready for the takeover bid. And we’re back to talking about golden power. What’s the meaning? What’s this? Who exercises it? When is it used? Golden power is the tool that allows the government to oppose the purchase of companies considered strategic, in the defense, energy, transport and telecommunications sectors. With the golden power, introduced in 2012, the executive can also oppose certain corporate resolutions based on the national interest. In fact, using this tool, the government has ‘special powers’ to indicate specific conditions for the purchase of shareholdings and can also place vetoes in certain sectors. With the golden power, Italy has overcome the so-called ‘golden share’, which in 2009 was the subject of an infringement procedure by the European Commission which believed that with this instrument the Italian system went beyond the objective of safeguarding the interest national. The power of intervention of the State guaranteed by the golden power as well as defense and national security, is exercised in some areas considered to be of strategic importance in the energy, transport and communications sectors: it is governed by decree-law no. 21 of March 15, 2012. In 2019 some changes were introduced that extend the exercise of special powers also to broadband electronic telecommunication networks with 5G technology. Tim and other companies in the telecommunications sector have adapted their internal organization to the rules of the Golden Power by providing specific safeguards to protect national strategic interests.