KKR makes a bid for Telecom Italia

US-based investment company KKR has made a new non-bidding offer to take Telecom Italia (TIM).

The undisclosed offer is for a purchase of a stake in the company that matches with the fixed-line network management and infrastructure perimeter, including FiberCop’s assets and activities, as well as the stake in Sparkle known as “Netco”.

TIM, Italy’s biggest telecommunications services provider, previously rejected KKR’s bid of $10.8 billion in 2021, despite the company having financial difficulties, after facing lower-than-expected annual results and profits warnings within three months.

In response to the US investment firm’s last offer, TIM said, “Given that KKR did not confirm its Expression of Interest, including the price therein previously indicated, the Board unanimously decided that it would not be appropriate at this time to grant KKR access to due diligence,”

KKR an investor in TIM, was brought into the fold in 2020 by Gubitosi, who agreed a €1.8 billion deal for a 37.5% stake in TIM-owned FiberCop.

In a statement regarding the new offer by KKR, TIM said, “The offer refers to a stake to be defined, on the understanding that the purchase would result in the loss of vertical integration in relation to TIM.

“The Board of Directors will meet today to begin the process of examining the non-binding offer.”