MILAN (Reuters – Shares In Telecom Italia The MI: were up 30% after U.S.-based fund KKR submitted a non-binding offer to purchase Italy’s old phone monopolist. It was valued at 10.8 million euros ($12billion).

Telecom Italia (TIM), due to its size, was unable for shares of Telecom Italia not to begin trading.

Telecom Italia (TIM) net credit of 22.5 Billion Euros lifts the value KKR’s offering to 33 Billion euros, conditional upon the backing of the government and the result of a 4-week due diligence assessment.

TIM claimed that KKR had deemed it as “friendly” Sunday’s offer of 50.5 euros cents per TIM shares, a 45.7% increase on the close price of the normal stock group on Friday.

This price, which TIM called “indicative”, could result in Vivendi, the top investor of the company (OTC) suffering a severe loss on its 24% stake. It spent an average 1.07 euro per share.

A French source told Reuters Vivendi that KKR had not valued TIM enough.

The proposal was not approved by TIM’s board.

KKR’s proposal comes amid chaos at Italy’s largest telephone group. The company has already issued two profit warnings within three months. Vivendi is now pushing to replace Luigi Gubitosi as CEO.

Gubitosi was frustrated with TIM’s decline in revenue and began looking at other options.

Italy’s Treasury declared Sunday that government decisions on using its special powers for blocking foreign interests on strategic businesses would be influenced by plans for the network.

($1 = 0.8872 euros)