Telecom Italia chief executive ready to step aside sources to speed up decision on KKR offer
By Elvira Pollina and Agnieszka Flak
MILAN (Reuters) – Italy’s Telecom CEO Luigi Gubitosi has told his council he is ready to step down if the KKR helps speed up the US private equity approach to the KKR group, sources told Reuters on Thursday.
KKR has made an offer of 10.8 billion euros ($ 12 billion) in the middle of a board meeting between Gubitosi and former Italian telecommunications monopoly investor Vivendi (OTC :).
Gubitosi said in a letter to the council on Thursday that it was time to take action, appoint advisers and make a decision on KKR’s offer, sources told Reuters, confirming a report earlier by Italian news agency Ansa.
“Attitudes of wasting time on the board should be avoided as they may be aimed at defending the interests of some shareholders,” Gubitosi said in the letter.
“Technically we could be ready for a data room in 48-72 hours,” he said in the letter, referring to the practice of giving a lawsuit and its advisers access to a company’s books to conduct the necessary diligence in a potential bid.
The French media group Vivendi has pushed for a change at the helm of Italy’s largest telecommunications company.
Gubitosi’s comments came as an auditor and TIM’s risk committee examined the group’s financial health after two earnings warnings in July, as it strengthened Vivendi’s hand to demand a change in management.
Vivendi declined to comment.
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