KKR has started the process of selecting the future head of Telecom Italia’s (TIM) network business ahead of an expected binding offer by the U.S. fund. The non-binding approach values the venture, known as NetCo, at around 23 billion euros, taking into account debt and other factors. KKR has asked executive recruitment firm Egon Zehnder to provide a list of candidates for the role of chief executive. The CEO candidate proposed by KKR will require the support of minority investors in NetCo.
Giorgia Meloni’s conservative administration approves of KKR’s approach, and the Italian Treasury plans to join KKR’s bid for NetCo for a 15%-20% stake. Other state-backed entities are also expected to invest, which would increase the Italian stake to around 30%-35%. KKR is expected to submit its binding offer by September 30, after being granted a period of exclusive talks. The deadline might be slightly delayed.
At an upcoming board meeting, TIM directors will review the progress made in negotiations with KKR.
Please note that the article has been rewritten while preserving the facts.