MILAN (Reuters). Telecom Italia (MI:) This week, a dialog was initiated with KKR (U.S. Private Equity Fund) over a possible takeover. The matter has been on hold since November last year. Sources familiar with the matter stated on Thursday.

On Sunday, the former telephone monopoly ordered Pietro Labriola, Chairman Salvatore Rossi and Chief Executive to begin formal talks with the U.S. company over their proposed buyout. The proposal valued TIM at 10.8 Billion Euros ($11.9 Billion) without debt.

TIM sought clarifications from KKR regarding its plans for debt-laden telecoms groups and the structure of the offer in a written letter that was sent to this week. This is according to sources who are familiar with the matter.

TIM said last week that there is “untapped value” within the company, which should be taken into consideration when weighing other options to the current plan of restructuring the group via a spinoff.

Sources said that KKR will respond to TIM’s inquiries within days.

Although no specific date has yet been set, a meeting could take place between TIM and KKR executives by March 31st.

Telecom Italia’s shares have been flattened at 0.30 Euros, far below KKR’s indicative valuation of TIM at 0.505 Euro a Share.

Vivendi (OTC) was not as enthusiastic about KKR’s idea and regarded it as too low.

($1 = 0.9060 euros)