Telecom Italia Dishonors' KKR's Due Diligence Request For $12bn Takeover Bid

Telecom Italia (TIM) has refused KKR access to its accounts in line with the latter’s due diligence request for a potential takeover. In November 2021, Telecom Italia was approached by KKR with a non-binding offer worth €10.8 billion ($11.8 billion). However, talks only started last month. According to TIM, the letter received from KKR on the 4th of April shows that the investor could not confirm its indicative offer of EUR 0.505 per share without carrying out due diligence. Per KKR, the circumstances remain the same because of TIM’s profit warning in December 2021, a downgrade of TIM’s credit rating, and guidance in March, which was below market.

According to TIM, KKR got the information at the same time other market participants got it. Yet, it did not confirm its interest in the acquisition, including the previous price. In light of this, TIM said it would not be granting KKR access to due diligence. However, TIM was quick to add that its Board of Directors is open to changing its stance if KKR submits an attractive deliverable and complete offer.