KKR & Co Inc (NYSE:KKR) has offered to acquire Telecom Italia SpA (OTC:TIIAY) for €10.8 billion ($12 billion), including €29 billion in gross debt, Reuters reports. The purchase price of €0.505 implies a 45.7% premium to Telecom Italia's November 19 closing price. 

• KKR aims to carve out Telecom Italia's fixed network to run as a government-regulated asset along the model used by energy grid company Terna Energy SA (OTC: TREAY) or gas grid firm Snam SpA (OTC: SNMRY).
• Italy's biggest phone group came under fire from top investor Vivendi SE (OTC: VIVEF) following two profit warnings in three months, charging CEO Luigi Gubitosi.
• Telecom Italia's revenue has shrunk by a fifth over the past five years, hit by aggressive competition from rivals like Iliad SA (OTC: ILIAY), Vodafone Group PLC (NASDAQ: VOD), Wind Tre, and Fastweb.
• Gubitosi is exploring options to squeeze money out of Telecom Italia's assets, particularly planning to merge its fixed-line grid with fiber optic rival Open Fiber.
• Telecom Italia observed that KKR had termed its action as "friendly" and aimed to win the company's backing and the government.
• Price Action: TIIAY shares traded higher by 3030.1010% at $5 in the market session on the last check Monday.