Aug 11, 2023 - Economy & Business

Italy joins KKR's €23 billion bid for Telecom Italia assets

Telecom Italia logo and tower.

Photo by Emanuele Cremasch via Getty Images.

U.S. private equity firm KKR is cutting the Italian government in on its €23 billion preliminary bid for Telecom Italia's landline network.

Why it matters: This show of political support from Italian Prime Minister Giorgia Meloni will make it much tougher for Vivendi, Telecom Italia's largest outside shareholder, to block the deal.

Details: The Italian government, which has the right to reject such a transaction, would receive up to a 20% stake in the post-acquisition business.

More, per Bloomberg: "The announcement [is] Meloni's second surprise intervention in a week after she imposed a windfall tax on banks ... Meloni has signaled that she considers Telecom Italia's network a strategic asset that must retain a degree of public oversight."

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