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Telecom Italia will hold an emergency meeting on Sunday to review the submissions from the US financial group KKR, a deal that could be one of the biggest telecommunications purchases of all time.
KKR already has a 37.5% stake in the Telecom Italia network “final meters” but has moved to the rest of the company, according to three people who are well aware of what is going on.
The offer of the Italian company, which is worth € 7.5bn and has a total debt of € 29bn, is a recent sign of interest in the European business community. Funds are aimed at disrupting businesses, separating networks and consumer businesses, in order to realize profitability or improve corporate performance.
Telecom Italia, which was the subject of a the painful pull of war for control over the past four years between Investor French Vivendi and US activist fund Elliott Management, has been struggling for the last quarter and issued two profit warnings over the past year.
Shares have dropped by one-third since March, and two-thirds since 2018, adding to the pressure of Luigi Gubitosi, who was based in Italy. was elected CEO in 2018, turning the company around.
Business news was first reported by Corriere della Sera.
Vivendi denied that he was in talks with KKR or CVC – as predicted – or any other secret agency on Telecom Italia.
“Vivendi is a long-term partner and we want to work with the government and other agencies to get Telecom Italia back,” the company said. “We are not happy with the game. . . The important thing is to keep the train afloat. ”
Telecom Italia was one of the most important companies in Europe during the 1990’s but has been experiencing difficulties for the past two decades. It is a politically important company and the government has the “gold power” to prevent the seizure or sale of goods that do not appear to be in the public interest.
KKR is one of the busiest businesses in Europe. It bought a small portion of Telecom Italia’s second net worth of € 1.8bn last year, through his own hands, and was part of a group of business that secretly took over Spanish Masmovil operators secretly in a € 5bn deal last year. Bought Hyperoptic, a UK-based fiber company, in 2019.
The U.S. procurement team has previously reached out to Dutch KPN operator with a seizure option, which was rejected this year along with a different approach to EQT and Stonepeak Infrastructure Partners. Every move would be one of the greatest attempts to seize secret money in European history.
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