Telecom Italia is close to picking banks to advise it on a buyout offer approach from U.S. private equity group KKR and could even assign mandates this weekend, two sources said this morning.
A special committee set up to study KKR’s non-binding bid approach, valued at 33bn euros (£28bn) including debt, met on Friday and will meet again over the weekend, the sources said. KKR’s approach was made public on November 21.
A wide range of banks are still in the fray for an advisory role in what would be Europe’s biggest ever private equity deal. Bank of America, Barclays and Intesa Sanpaolo division IMI CIB have emerged as front runners, the sources said.
The sources also told Reuters that no decision had yet been taken.
Divisions within Italy’s biggest phone group are making it difficult for TIM to respond to KKR’s offer after a shareholder row a week ago forced Luigi Gubitosi to step down as chief exec.
TIM’s top shareholder Vivendi is pushing for a full board reshuffle after Gubitosi refused to step down from the board, sources said – a move that prevented new general manager Pietro Labriola being named chief last week.
Labriola is in line to become chief but Gubitosi or another director must first step down from the board to make way for him.