Giuseppe Fonte & Elvira pollina

MILAN (Reuters – CVC Capital Partners is looking to make a potentially significant investment in the services division of CVC Capital Partners. Telecom Italia According to sources, Friday’s announcement by sources was made under the pretext of an Italian phone monopoly reorganisation.

Italy’s government has created new rules that will force strategic asset owners to inform it about any initial discussions with possible suitors.

According to two different government officials, the new provisions form part of a wider plan to improve Italy’s anti takeover rules, or so called golden powers. They are primarily aimed towards policing changes in TIM’s ownership structure.

CVC had stated it was looking at the reorganisation underway at TIM for some time. However, a source who is familiar with the matter told me that the fund was scheduled to officially express interest in TIM’s services arm on Friday.

CVC wasn’t immediately available for comment. TIM did not respond to requests for comment.

TIM already evaluates a U.S. giant fund firm KKR’s 10.8 Billion Euro ($11.9 Billion) takeover proposal.

Newly-appointed Chief Executive Pietro Labriola has unveiled plans to split TIM’s service businesses from its domestic fixed network operations to unlock value and pursue M&A deals.

This new entity will include TIM Enterprise Business, which includes cloud IoT operations and cybersecurity operations. Bestinver listed a 10.5 billion euro valuation.

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According to other sources, Apollo Global Management (NYSE : ) is also looking into potential investments in TIM’s services operations.

According to one person, “At minimum three major funds have been assessing TIM’s position with the aim of investing in its service arms.”

Apollo refused to comment.

After dropping to a record-breaking low earlier in the month, TIM shares jumped 7.2% to touch a high of around 0.35 Euros on Friday. Analysts as well as traders cited speculative appeal due to private equity interest.

The KKR strategy was presented at 0.505 Euros.

TIM is trying to restart a long-held plan to combine its fixed lines assets with Open Fiber.

This move was supported by CDP, the state lender CDP which holds a 60% share in Open Fiber.

According to a source, TIM left KKR in suspense for almost four months before finally engaging in formal talks. Earlier this month, TIM prepared another letter asking for clarifications from KKR.

Another source stated that the TIM board would be informed at a meeting on Tuesday about developments in KKR.

($1 = 0.9080 euros)