KKR makes $12 billion approach to take Telecom Italia private
Information about KKR makes $12 billion approach to take Telecom Italia private
By Elvira Pollina, Valentina Za and Pamela Barbaglia
MILAN (Reuters) – Telecom Italia (TIM) has received a 10.8 billion euro ($12 billion) approach from U.S. fund KKR aimed at taking Italy’s biggest phone group private, the company said on Sunday.
KKR’s move comes as TIM’s CEO Luigi Gubitosi battles for survival after coming under fire from top investor Vivendi following two profit warnings in three months.
TIM said KKR had set an indicative price of 0.505 euros for its possible buyout offer — a 45.7% premium to the ordinary shares’ closing price on Friday. KKR would also offer the same price for TIM’s savings shares.
The TIM board, chaired by former Bank of Italy official Salvatore Rossi, met for several hours on Sunday afternoon but in a short statement it …