According to two people with knowledge of the situation, KKR (KKR.N) intends to inform the antitrust regulators of the European Union by the end of January about its intention to acquire Telecom Italia’s (TIM) (TLIT.MI) fixed access network.
In an agreement valued at up to 22 billion euros ($24 billion), Italy’s erstwhile phone monopoly consented to sell the U.S. fund its valuable landline network in November. The goal of the transaction is to cut TIM’s debt and workforce drastically.
Leading TIM investor Vivendi (VIV.PA) is suing to block the sale despite the backing of the Italian government, which intends to purchase a 20% interest in the network business to manage an asset considered of strategic national importance.
By mid-year, TIM anticipates that the merger, which needs EU antitrust approval, will be finalized.
According to the sources, KKR has already initiated preliminary discussions with EU antitrust regulators before the official notice, which is anticipated to occur by the end of January.
KKR chose not to respond. According to a spokesman for the European Commission, the Commission was not formally informed of the transaction and had no additional comments.
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