Tim, exclusive negotiation with Kkr for the network

MILAN. The Americans of Kkr are in pole position to take over Tim’s network, which is the most important digital infrastructure in the country. The offer from the US fund was judged the best by Tim’s board of directors who met today. «Following a broad and in-depth debate», reads a note, with the assistance of the financial advisors Goldman Sachs, Mediobanca and Vitale & Co and in the light of the preliminary investigation carried out by the related parties committee (in turn assisted by LionTree and Equita), considered that the offer presented by Kkr “was preferable in terms of executable and relative timing, as well as superior compared to the competing offer” presented by the consortium formed by Cdp Equity and Macquarie.

Consequently, the board unanimously mandated CEO Pietro Labriola “to initiate, exclusively, an improvement negotiation with Kkr, aimed at obtaining the presentation – in the shortest possible time compatibly with the complexity of the operation and in any case within the 30 September – of a final and binding offer according to the best terms and conditions, as well as to agree on the perimeter, methods and times for the execution of the confirmatory due diligence activity referred to in the same offer by Kkr”. It is possible that at least one other investor will join Kkr, namely the F2i fund, also participated by the CDP: if on the other hand it would give a touch of Italian character to an operation that would see a sovereign government like that of Giorgia Meloni deliver a strategic infrastructure to a country foreign, although allied with Italy.

The great unknown at the moment, however, is represented by Vivendi, Tim’s leading shareholder with 23.75% and, after the resignations of Arnaud de Puyfontaine (CEO of the French media company) and Frank Cadoret, no longer represented on the board. The French would not consider Kkr’s offer fair which, from the previous 21 billion (two of which in earn-out linked to the possible merger with Open Fiber and the granting of the rab by the government) have raised the valuation to almost, under certain conditions, the 23 billion euros. For Vivendi, the network is worth much more: the value would be around 30 billion. For this they could fight in the assembly. If this, as in the French wishes, were extraordinary (which decides with a majority of two thirds), they with almost 24% would have a minority capable of blocking the operation. Conversely, with an ordinary meeting, which does not require qualified majorities, the battle would be more open.