Telecom Italia opens exclusive negotiations with KKR to sell its network

TIM decided. Its board of directors decided on Thursday “unanimously” to give CEO Pietro Labriola a mandate to start “exclusive” negotiations with KKR for a “final offer” for the takeover of its fixed line network. In a press release, the Italian incumbent operator specifies that it must be submitted to it by September 30.

By announcing “preferred” the offer of the American investment fund KKR for the sale of its fixed network, TIM thus dismisses that put forward by Ca Depositi e Prestiti (CDP) and the Australian investment fund Macquarie. TIM justifies its choice by explaining that KKR’s offer “proved to be preferable in terms of feasibility and relative time, as well as superior to the competing offer”. No figures have yet been released. According to two sources familiar with the matter quoted recently by Reuters, the offer of the American fund could reach 23 billion euros, while that of the Italian CDP is 19.3 billion euros.

An offer that satisfies the Italian government

In addition to its higher amount, KKR’s offer also has the advantage of a possible alliance with the Italian infrastructure fund F2i, of which Ca Depositi e Prestiti is one of the main shareholders. An increase in Italianness which will not displease the sovereignist government of Giorgia Meloni.

He considers “strategic” the activities of TIM and wishes to defend them from excessive foreign interference, in particular that of its largest shareholder, the French Vivendi, with a share of 23.75%. Last month, the Italian Ministry of the Economy had also indicated that it would be ready to support a possible joint offer by CDP and KKR.

The unknown Vivendi

These offers remained very far from the expectations of Vivendi, which is asking for 31 billion euros. Tension has risen in recent weeks with the Italian government supporting the candidacy of Alessandro Pansa as a new member of the board of directors of TIM, dismissing that proposed by the French.

At the beginning of June, Vivendi announced that “the season of offers” for Telecom Italia’s fixed network was coming to an end, adding that new offers should be rejected. According to the “Financial Times”, he decided to oppose those of KKR barely accepted. Vivendi declined to comment on this information.