MILAN (Reuters) – Telecom Italia (TIM) has rejected a request from KKR to carry out due diligence of its business because the U.S. fund has failed to make a formal bid for the company, TIM said on Thursday.
KKR first approached TIM last November with a non-binding offer valuing the company at 10.8 billion euros ($11.76 billion) but TIM only agreed to open talks last month.
“Should KKR submit a deliverable, complete and attractive offer … TIM Board of Directors would be open to reconsidering its decision in the interest of all shareholders,” TIM said in a statement.
“KKR ultimately confirmed its interest in exploring any other transactions in the interest of the company, its shareholders and Italy,” the statement added.
KKR is already an investor in TIM’s last-mile fixed-line network.
KKR had told TIM in a letter it remained interested in buying the company but would not confirm a bid without access to TIM’s books as the war in Ukraine had changed market conditions.
TIM has cut its outlook and suffered a series of credit rating downgrades since the initial approach late last year.
($1 = 0.9182 euros)
(Reporting by Elvira Pollina; Editing by Keith Weir)
