Telecom Italia (TIM) has selected US private equity firm KKR as an "exclusive partner" to help it roll out fibre-optic networks throughout Italy, confirming earlier reports. In a statement, the operator said its board had taken positive note of a non-binding proposal by KKR following a meeting to discuss the merger of its fibre-optic assets with those of wholesale rival Open Fiber.
The move comes after talks between TIM and the owners of Open Fiber – utility giant Enel and state lender CDP – reportedly stalled earlier this year due to regulatory, funding and business issues. However, earlier this week Italy’s economy minister Roberto Gualtieri called on the parties to quickly hammer out a deal to speed up the development of a unified network and prevent duplication.
In its statement, TIM described Gualtieri’s comments as “significant” and confirmed that CEO Luigi Gubitosi will inform institutional bodies about the progress of negotiations in line with so-called 'golden power' legislation aimed at protecting strategic industries.
Unnamed sources cited by Reuters said KKR would still be TIM’s partner even if an agreement with Open Fiber failed to materialise and that the investment fund has also expressed an interest in acquiring a 42-43 percent stake in TIM’s last mile (copper and fibre) network.
