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Telecom Italia close to choosing advisers for KKR deal

by Mike Robinson

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© Reuters. FILE PHOTO : This is the TIM logo at the company’s headquarters, Rome (Italy), November 22, 2021. REUTERS/Yara Nardi/File Photo

MILAN (Reuters). Telecom Italia Two sources claimed that (MI:), is in the process of selecting banks for advice on a buyout proposal from U.S. equity group KKR. They could also assign mandates this weekend.

According to sources, a committee created by KKR for the purpose of studying the non-binding bid proposal was set up on Friday. They will be meeting again this weekend. The KKR approach was published on November 21.

The deal would see Europe’s largest private equity transaction ever. Bank of America (NYSE :). Barclays Sources said that Intesa Sanpaolo, (OTC) and (LON) Intesa Sanpaolo have been the frontrunners in division IMI (LON) CIB.

Sources also stated that no decision was yet made. TIM declined comment. Banks were unavailable for comment immediately.

After a shareholder dispute that forced Luigi Gubitosi’s resignation as CEO, TIM is having difficulty responding to KKR’s offer. TIM’s biggest shareholder Vivendi is pressing for a full board reshuffle, according to sources. Gubitosi has refused to resign from the board. The move was a result of which Pietro Labriola was not appointed CEO.

Labriola could be appointed CEO. Gubitosi, or any other director on the board must however first step down to allow Labriola to take his place.

Sources previously stated that Goldman Sachs, IMI and Bank of America were being considered for a role in advising TIM prior to Gubitosi’s departure as CEO.

($1 = 0.8839 euros)

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