The chances of US fund KKR going ahead with a firm bid for Telecom Italia appeared to wane further on Tuesday, with an impasse over access to the company’s accounting records.
KKR said it cannot confirm its €10.8 billion offer unless Italy’s biggest telecoms group gives it access to accounting records under a due diligence process, according to two sources with knowledge of a letter from KKR to the board. from Telecom Italia.
The company, which is moving forward with its own standalone plan, wants to give access to the fund only when a formal offer is made.
“The chances of the deal now appear very low,” analysts at Banca Akros said in a note.
Telecom Italia’s share was down more than 1% on the Milan stock exchange to 0.31 euro, far below the 0.505 euro price of KKR’s non-binding approach launched last November.
KKR said it remains interested in buying Telecom Italia but will not confirm an offer without due diligence as the war in Ukraine has changed market conditions, according to the sources.
Telecom Italia has suffered a series of credit rating downgrades.
The letter said KKR remained available to evaluate deals that would create value for Telecom Italia and all of its shareholders, the sources added.
Telecom Italia’s board is expected to discuss KKR’s letter and CVC’s proposal on Thursday.
Source: CNN Brasil
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