Telecom Italia (TIM) (TLIT.MI), Italy’s largest telecoms operator, received two new proposals for its landline grid on Friday to break the impasse over the sale of its primary asset.
According to a statement, KKR (KKR.N) and a rival consortium of state lender CDP and Australian firm Macquarie (MQG.AX) competed for Telecom Italia’s network. Debt-crippled After rejecting May proposals for its most valuable asset, TIM sought better offers.
“TIM announces that, as part of the competitive bidding process relating to Netco, two new non-binding offers have been received today,” the company said. Whether the new bids were sweetened was not disclosed.
NetCo includes Sparkle and TIM’s fixed access network.
Two people close to the case said CDP and Macquarie had kept the economic worth of their bid comparable to their earlier offer, suggesting several antitrust steps.
Due to CDP and Macquarie’s ownership of Open Fiber, antitrust issues arise.
Another two people said KKR might increase its offer by more than 2 billion euros ($2.1 billion) based on the conditions of NetCo’s contracts with the rest of the firm, which would have to be negotiated with TIM.
TIM said its board will evaluate the ideas on June 19 and 22. After Vivendi (VIV.PA), CDP owns 10% of TIM.
CEO Pietro Labriola’s proposal to cut the former phone monopoly’s 26 billion euro debt and turn it around centers on the network sale.
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