Movements in Telecom Italia’s pre-conference trading jumped 30%, as the US fund KKR presented a non-binding proposal for the acquisition of the former Italian telecommunications monopoly company, for 10.8 billion euros.
The size of the movement did not allow the start of trading of shares.
Telecom Italia’s net debt of € 22.5 billion raises the value of the KKR proposal, which should receive government support and the result of its four-week due diligence analysis, to € 33 billion.
TIM on Sunday said KKR’s proposal had been described as “friendly”, at 50.5 cents per share of the company, with a premium of 45.7% compared to Friday’s close.
The price, which Telecom Italia described as “indicative”, would expose the company’s largest investor, Vivendi, to a large loss of 24%, for which it spent an average of 1.07 euros per share.
KKR’s proposal comes amid upheaval in Italy’s largest telecommunications group, which has issued two quarterly earnings warnings, leading Vivendi to push for a replacement for its chief executive, Luigi Gubitosi.
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Source From: Capital
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