Telecom Italia SpA (TIM) on Sunday confirmed that it had received a “friendly,” non-binding expression of interest by US private equity fund KKR & Co that values the Italian operator at about 10.8 billion euros (US$12.2 billion).
An emergency meeting of TIM’s board of directors was called to discuss “a possible public tender offer for the entire share capital of the company” offering an initial 0.505 euros a share, the firm said in a statement afterward.
On Friday, TIM shares closed at about 0.35 euros.
It said the proposal, aimed at the “delisting” of the company, was subject to about four weeks of due diligence and would only go ahead with the backing of the holders of least 51 percent of both ordinary and savings shares.
It would also require clearance by Italian government stakeholders, as TIM’s network is considered a national strategic asset.
“The indication of interest was qualified by KKR as ‘friendly’ and aims at obtaining approval by TIM’s directors and support by the company’s management,” the statement said.
KKR already has a 37.5 percent stake in FiberCop SpA, a joint venture with TIM and Italian Internet provider Fastweb SpA to provide fiber optic broadband across Italy.
The takeover proposal comes amid news reports that shareholders — the largest of which is France’s Vivendi SA — are putting pressure on TIM’s top management following disappointing recent results.
A spokesman for Vivendi had earlier denied that it was in discussions with any funds, including CVC Capital Partners Ltd, which had also been named in speculation about TIM’s future.
“Vivendi is a long-term investor in Telecom Italia and has been so since the beginning. Vivendi denies strongly having had any discussions with any funds, and more specifically with CVC,” he said.
“Vivendi reiterates its desire and willingness to work alongside Italian authorities and public institutions for the long-term success of TIM,” he added.
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