Telecom Italia Explores KKR's $11B Takeover Offer, Possible Tie-Up With Open Fiber: Reuters

  • Telecom Italia SpA TIAIY TIIAY looked to discuss KKR & Co Inc's KKR €10.8 billion ($11.8 billion) four-month-old takeover offer, Reuters reports.
  • KKR's bid of €0.505 per share is a 75% premium to TIM's March 11 closing, against a 46% premium four months back, which CEO Pietro Labriola deemed as too low last time.
  • KKR paid €1.8 billion to TIM in 2021 for a 37.5% stake in its secondary network.
  • KKR wanted to secure control of the debt-laden former phone monopoly, delist it and relaunch it by carving out its network infrastructure assets.
  • Rome became the second-biggest investor in TIM through state lender CDP, which owned 60% of Open Fiber, to oversee TIM's fixed-line assets.
  • TIM also explored a possible tie-up with state-backed broadband rival Open Fiber including relinquishing a majority of its prized fixed landline assets.
  • A merger with Open Fiber could provide TIM's investors with an upside of €1 per share.
  • Price Action: KKR shares closed lower by 2.17% at $52.29 on Friday.
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