The giant American investment company KKR has submitted a proposal for the acquisition of Telecom Italia, in a move aimed at restructuring the troubled Italian telecommunications company, whose value this year shrank by 8% to 7.4 billion euros.
According to Bloomberg, KKR plans to split the telephone company’s network activities in order to obtain a steady stream of revenue from regulated tariffs, said people with knowledge of the issue who spoke on condition of anonymity, as KKR plans do not have made public. The same sources report that the Board of Directors of Telecom Italia, chaired by Salvatore Rossi, will convene today, Sunday, to consider the expression of interest of the American investment company.
However, in the appeal of the Corriere della Sera newspaper for confirmation, the representatives of Telecom Italia and KRR refused to respond.
Earlier in the month, Bloomberg reported that KKR had expressed interest in acquiring Telecom Italia’s FiberCop fiber optic unit. Last year, KKR acquired 37.5% of FiberCop, for 1.8 billion euros.
KKR’s future plans for Telecom Italia could be an alternative to the much-discussed merger of FiberCop with the smaller but more competitive Open Fiber, which is financially supported by the Italian state.
According to Bloomberg, citing sources familiar with the matter, KKR has already held talks with the Italian government on its bid for Telecom Italia. The Italian government did not comment on the news.
The French Vivendi SE, which is the largest shareholder of Telecom Italia, has expressed its dissatisfaction with the performance of the telecommunications company, putting pressure on the Board of Directors to increase profitability. Finally, Bloomberg reports that the French company is likely to submit a counter-offer, which could include the participation of CVC Capital Partners.
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Source From: Capital
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