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KKR submitted its non-binding takeover proposal for TIM in November, having already invested 1.8 billion euros for a 37.5% stake in the group’s last-mile fixed-line network.
TIM left the New York-based fund waiting for four months without an answer before agreeing earlier in March to engage in talks, while pressing ahead with its standalone reorganisation centered around a split of its assets. The fund, whose approach has effectively been in limbo since November, will tell in a letter to TIM expected later on Monday it remained interested in acquiring Telecom Italia but that due diligence checks were needed before any bid was formalised because the market had changed, the source said. This clashes with TIM’s approach of giving the fund access to its books only after a formal bid has been made. TIM shares ended 2% lower on Monday to 0.32 euro against a flat Italy’s blue chip index. It remained far below KKR’s 0.505 euro pitched by KKR in November.
In a letter sent to the U.S fund last week, TIM had asked KKR to clarify by Monday whether the November price of 10.8 billion euros for the equity was confirmed, sources have said.
TIM also sought clarification of whether KKR’s due diligence would only have a confirmatory nature, meaning it would have to be preceded by a formal offer, the same sources said.
TIM’s board is expected to discuss KKR’s letter and a separate proposal from private equity firm CVC for a stake in its enterprise service business on April 7.
($1 = 0.9065 euros)
