KKR offers to acquire TIM/Telecom Italia for $12 billion

United States hedge fund KKR has offered to acquire Italian telco TIM/Telecom Italia for $12 billion. TIM revealed that its board of directors met this week to discuss the interest of KKR to take its company private. However, there’s no assurance or indication whether TIM’s board will accept KKR’s offer. According to Bloomberg, Telecom Italia’s largest shareholder Vivendi, is unlikely to agree to KKR’s proposal. This is because Vivendi thinks the offer undervalues the company.

According to TIM, KKR had set an indicative price of €0.505 for its potential buyout offer. The offer is a 45 percent premium to the closing price of the ordinary shares on Friday. Besides, Italy’s Treasury spoke to Reuters about international firms’ interest in Italian companies. It noted that it is great news for the country, but any plans for acquiring TIM should be in line to quickly complete broadband rollout across Italy. In addition, the investment must also be supported by adequate investments.

TIM/Telecom Italia currently has a debt profile of over €30 billion. It has also issued many profit warnings in 2021.