MILAN (Reuters) – Telecom Italia (TIM) this week started a dialogue with U.S. non-public fairness fund KKR over a takeover method which has been placed on maintain since final November, sources conversant in the matter stated on Thursday.
The previous telephone monopoly on Sunday mandated newly appointed Chief Govt Pietro Labriola and Chairman Salvatore Rossi to start out formal discussions with the U.S. big over its buyout proposal valuing TIM at 10.8 billion euros ($11.9 billion)excluding debt.
In a letter despatched this week, TIM requested clarifications over KKR’s plans for the debt-laden telecoms group and the construction of its supply, sources conversant in the matter stated, confirming a report by Italian day by day La Stampa.
TIM final week stated there was “untapped worth” within the firm which wanted to be thought of when weighing alternate options to its personal plan to revamp the group by means of a by-product of its community infrastructure.
KKR is anticipated to reply inside days to supply clarifications to TIM’s requests, the sources added.
A primary assembly between TIM executives and KKR representatives could possibly be organized by the tip of March, though no date has been determined but, one of many folks added.
Telecom Italia’s shares are flat at 0.30 euros, approach beneath KKR’s indicative supply valuing TIM at 0.505 euro a share.
KKR’s method acquired a cool reception from TIM’s high investor Vivendi, which billed the supply as too low.
($1 = 0.9060 euros)
Reporting by Elvira Pollina; Enhancing by Keith Weir
