Telecom Italia Plans Alternative Options on KKR Takeover Bid

Pietro Labriola, the GM of Telecom Italia, outlined a plan offering alternative options to a takeover bid by KKR. The plan appears as a preparation for a rejection of the deal.

Labriola proposed separating Telecom Italia’s infrastructure assets from its services operations in a plan presented to managers in an informal briefing. Telecom Italia’s board was broadly positive on the proposals, with Reuters noting banking group Banca Intesa Sanpaolo believes the plan could free chiefs to reject KKR’s offer. A finalized plan is set to be presented on 2 March, when the board meets to discuss 2021 earnings.

Labriola is expected to be named as the successor to former CEO Luigi Gubitosi this week, an appointment reportedly backed by Vivendi, Telecom Italia’s largest shareholder. Telecom Italia is yet to respond to KKR’s offer to take it private, but Italy’s government reportedly insisted it must retain control of the operator’s strategic assets should takeover progress. Speculation over Telecom Italia’s future comes as rival Iliad Italia is expected to announce a further shake-up of the market by launching fixed-line services.