Telecom Italia shareholder Vivendi reportedly immediately objected to a move to enter exclusive negotiations with KKR over a sale of fixed-line assets, with Financial Times (FT) stating the French company remains concerned over the value of the deal.
The Italian operator’s board yesterday (22 June) approved exclusive talks with KKR following a lengthy process to find a buyer for its Netco fixed-line spin off. Telecom Italia stated ameliorative negotiations will take place with a view to securing a binding offer and other terms no later than 30 September.
Telecom Italia stated its board considers KKR’s proposal to be “preferable in terms of executability and timing”, along with being higher than an offer presented by a consortium of CDP Equity and Macquarie Infrastructure and Real Assets (Europe).
Vivendi, however, reportedly sees things differently: FT noted the French company is concerned over the potential value being placed on the fixed assets, which it considers “the jewel” of Telecom Italia’s proposition.
The publication stated KKR submitted a plan which values Netco at around €22.5 billion: Vivendi reportedly believes the figure should be more than €30 billion.
Vivendi supervisory board chair Yannick Bollore told FT it is keen to ensure maximum value for all Telecom Italia shareholders.
The French company holds a 23.75 per cent stake in Telecom Italia and the companies have clashed several times in recent years regarding the running of the business.