(Reuters) – Telecom Italia (TIM) said on Tuesday U.S. fund KKR & Co Inc has extended the non-binding offer for its prized landline grid by four weeks to March 24 following a government request.
TIM said the extension of the deadline is due to a request by the Italian government to have an additional four weeks to carry out an analysis of the “public aspects” of the deal.
KKR’s approach valued the infrastructure at some 20 billion euro, including debt and a 2 billion euros earnout, two sources familiar with the matter said.
The development comes at a time when Italian state lender Cassa Depositi e Prestiti (CDP) is still working to secure key government backing to submit an offer countering the KKR offer.
Earlier this month KKR, which already owns a minority stake in TIM’s landline grid, submitted a non-binding bid for a controlling stake in a unit comprising TIM’s domestic fixed network and submarine cable unit Sparkle.
A day later, Italy expressed its intention to implement its goal of putting Telecom Italia’s grid in state hands.
TIM said its Board of Directors will meet on 24 February to discuss KKR’s non-binding offer.
(Reporting by Kanjyik Ghosh and Elvira Pollina; Editing by Lincoln Feast.)
