MILAN (Reuters) – Italy’s Treasury said on Thursday it had signed a preliminary agreement with U.S. fund KKR paving the way for the government to buy up to 20% of company that will own Telecom Italia’s landline grid.
KKR is discussing with debt-laden TIM on an exclusive basis the acquisition of Netco, a venture comprising both TIM’s fixed domestic access grid and submarine cable unit Sparkle.
The Treasury is set to present a binding offer for its stake under terms that would see the government play a key role in strategic decisions over TIM’s network.
Sources had told Reuters on Tuesday that KKR and the Italian Treasury could sign a memorandum of understanding (MoU) for the government to co-invest alongside the U.S. firm in the grid as early as this week.
(Reporting by Valentina Za; Editing by Keith Weir)
