Telecom Italia is about to make a decision on KKR transaction advisor

© Reuters. File photo: The TIM logo is seen at the headquarters of a telecommunications company in Rome, Italy, on November 22, 2021. REUTERS/Yara Nardi/File Photo

MILAN (Reuters)-Two sources said on Saturday that Telecom Italia is approaching the selection of a bank to advise it on the US private equity group KKR’s takeover offer and may allocate authorization as early as this weekend. Sources said that a special committee set up to study KKR’s non-binding bidding method met on Friday. The committee is worth 33 billion euros ($37 billion), including debt, and will meet again at the weekend.

KKR’s approach was made public on November 21.

“They can propose three names before Monday, but time is tight and it may be delayed for longer,” one of the sources said. Many banks are still vying for the role of consultants in Europe’s largest private equity transaction ever. Bank of America (New York Stock Exchange:), Barclays (LON:) and Intesa Sanpaolo (OTC:) division IMI (LON:) CIB has become the front runner, the source said. The source also said that no decision has been made yet. TIM, IMI, Bank of America and Barclays declined to comment. After a shareholder quarrel forced Luigi Gubitosi to resign as CEO a week ago, the division of Italy’s largest telephone group made it difficult for TIM to respond to KKR’s proposal. According to sources, after Gubitosi refused to step down from the board of directors, TIM’s largest shareholder Vivendi (OTC:) is pushing for a comprehensive reorganization of the board of directors, a move that prevented the new general manager Pietro Labriola from being appointed as chief executive last week. official.

If Gubitosi or other directors step down to make way for him, Labriola may be appointed chief executive.

Sources previously stated that Goldman Sachs (NYSE:), IMI and Bank of America had lined up to advise TIM before Gubitosi resigned as CEO.

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