Shareholder Vivendi may yet thwart the latest plans by Telecom Italia to sell its landline network to the private equity firm KKR.
The Board of Telecom Italia (TIM) backed the opening of exclusive talks with KKR Thursday, but the French Media giant, which holds a 23.75 per cent stake in TIM believes KKR’s offer undervalues the unit. It fears TIM has no clear plan on what it would do next.
KKR has bid €23 billion for the unit which also includes the submarine cable business Sparkle. It has already had an offer that would have taken the entire company private rejected.
However, any deal would need the approval of the Italian government, which holds a golden share. In order to do so, KKR is prepared to let the Italian government have a continued involvement in the telco.