KKR still reportedly still interested in TIM, but wants to pay less

The new government led by Giorgia Meloni backs the creation of a network champion and wants CDP to take over TIM's network infrastructure.

Advisors and investors consider their options as share price languishes

If Telecom Italia’s (TIM’s) new CEO, Pietro Labriola, thought that the plan he presented last week would draw a line under KKR’s bid to gain a controlling stake, he was wrong. The boardroom drama looks set to continue.

There are reports that the private equity infrastructure investor, KKR, which offered €10.8 billion last November (equivalent to €0.505 per share), is still interested in buying the stake, but for less – €8.64 billion (or €0.40 per share), according to Reuters.

The CEO’s rescue the plan, presented to the board last week, proposes to split of the operator into two separate entities, NetCo and ServCo, but did not countenance selling the operator. Its share price plunged.

With its shares at about €0.26, the former incumbent Italian operator has a market cap of just €4.9 billion and reported a net loss of €8.7 billion for for its financial year of 2021.

Advisers are still considering Labriola’s recommendations and KKR’s new offer, and it is thought they will meet at the weekend and confirm the private equity fund’s continuing interest.