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Telecom Italia shares rebound as KKR bid hopes rekindled

Telecom Italia shares rebound as KKR bid hopes rekindled
Telecom Italia shares rebound as KKR bid hopes rekindled   -   Copyright  Thomson Reuters 2022
By Reuters

MILAN -Shares in Telecom Italia (TIM) rebounded on Tuesday after an Italian newspaper reported that U.S. fund KKR was still interested in a takeover deal, albeit at a lower price.

Italian newspaper Il Messaggero said that KKR could confirm its interest in a deal but at price of around 0.40 euros per share. KKR made a non-binding approach to TIM in November which was pitched at 0.505 euros per share, valuing Italy’s largest telecoms company at 10.8 billion euros ($11.8 billion).

KKR declined to comment on Tuesday. TIM was not immediately available for comment.

A board meeting to draw up a response to the KKR proposal could be held on Sunday once TIM‘s advisers complete an analysis to compare TIM‘s planned in-house revamp with KKR‘s plan, two sources close to the matter told Reuters on Monday.

Ahead of their assessment this week, TIM‘s advisers have asked the U.S. fund to clarify whether the terms of its November offer still stand, the sources added.

Its shares, which have plunged over the past three sessions, were up 9% at 0.2574 euros by 0830 GMT.

The shares have remained well below the takeover approach as leading TIM shareholder Vivendi had indicated it was too low. A big annual loss reported last week and a standalone plan that has so far failed to win over investors added to the pressure. ($1 = 0.9180 euros)