On Friday, U.S. fund KKR formally requested Telecom Italia (TIM) to extend the submission deadline for a binding offer concerning the phone group’s landline network from September 30 to October 15, as confirmed by TIM in a statement. TIM’s board is set to review this request during a meeting scheduled for September 27.
In a strategic move, KKR had secured the endorsement of Prime Minister Giorgia Meloni’s government the previous month, paving the way for the Treasury’s participation in a bid for Italy’s primary piece of telecoms infrastructure—an asset marked as of strategic national importance.
KKR’s preliminary bid assessed the business, referred to as NetCo, at approximately 23 billion euros ($24.5 billion), encompassing debt and considering various factors. The sale of NetCo holds significant importance for TIM CEO Pietro Labriola, forming a pivotal aspect of efforts to reshape the former national telephone company and substantially reduce its net debt, which currently amounts to 26 billion euros.
This proposed sale stands as the latest strategic measure in a series of plans devised to ensure a sustainable future for TIM, a company employing over 40,000 individuals across Italy.
