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Telecom Italia board to meet Sunday on KKR’s takeover proposal-sources -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO, Telecom Italia’s logo is displayed on a Rome building, Italy, 9 April 2016. REUTERS/Alessandro Bianchi/File Photo

MILAN, (Reuters) – The board Telecom Italia Two sources close to this matter confirmed that the TIM (MI:), will be meeting on Sunday in order to discuss a proposal from KKR (the U.S. Fund) for a takeover. KKR is an existing investor in the fixed network of the Italian telephone group.

KKR paid 1.8 billion euro ($2 billion) last year for a 37.5% share in FiberCop. FiberCop is the unit that holds TIM’s last mile network linking street cabinets and people’s houses.

KKR is evaluating the options available to TIM for its fixed-line grid. This asset, which is heavily indebted, can be used to offset shrinking revenues and profits. Another source said that KKR had prepared a proposal to purchase the group and create the network.

Corriere della Sera, an Italian newspaper, first reported the news of the extraordinary board meeting.

($1 = 0.8859 euros)

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