KKR fund takes stake in Telecom Italia, which soars on the Milan Stock Exchange
Shares in telecoms group TIM have soared on the Milan Stock Exchange, up more than 11%, after announcing that it had received a non-binding offer from US investment fund KKR for its fixed network.
After the opening, TIM shares were up 9 % at 0.28 euros, but were up 11.7 % shortly afterwards.
TIM announced shortly before the opening of trading in Milan that it has received a non-binding offer from KKR “to acquire a stake in the creation of a company that matches the perimeter of management and infrastructure of the fixed network including the assets and activities of FiberCop, as well as the stake in Sparkle (called Netco)”.
It is “a non-binding offer referring to a stake to be defined, on the understanding that the purchase would entail the loss of the vertical integration with TIM”, the group explained in a statement without giving further details.
The board of directors will meet today to start the process of examining the offer from the US fund, one of the main shareholders of Spain’s MásMóvil after the takeover bid launched in 2020, which had already submitted a bid for the whole of TIM in 2021 that it did not confirm.
