(AOF) – Telecom Italia (TIM), whose action advances 1.31% to 0.29 euros on the Milan Stock Exchange, has obtained authorization from the Italian government for the sale of its fixed network to KKR for 22 billion euros. The former Italian telephone monopoly agreed in November to sell its landline network to the American fund, as part of a historic agreement aimed at significantly reducing TIM’s debt and staff.
The operator welcomed the green light from Rome, specifying that the commitments made “were considered by the government to be fully adequate to guarantee the protection of strategic interests”.
Although supported by the Italian government, which plans to take a 20% stake in the network company, the operation is contested in court by Vivendi, majority shareholder of TIM with 23.75% of the capital.
An agreement finalized for the middle of the year, according to TIM
In mid-December, the French media and communications group filed a legal action to demand the cancellation of the sale, which it considers “illegal”, without requesting an emergency suspension of the transaction.
The State is already a shareholder in Telecom Italia through the 9.81% share held by the Italian Caisse des Dépôts (CDP).
Telecom Italia and KKR have agreed on the appointment of a manager of Italian nationality and the “maintenance of research and maintenance activities in Italy”.
TIM hopes to finalize the deal by mid-year.
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