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TIM GM plans last-ditch revamp as KKR pressure builds

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Telecom Italia (TIM) will undergo a potential revamp according to its general manager Pietro Labriola as an alternative to a takeover from US hedge fund KKR.

Labriola is widely expected to become TIM’s new chief executive but the firm is yet to respond to KKR’s $12.28 billion proposal to take over the company.

The plan set out by Labriola will be examined by the board on March 2 and will provide a benchmark for TIM to evaluate KKR’s approach even further.

The plan comes at a critical time for the telco as it has emerged that KKR has held talks with the Saudi Arabia Public Investment Fund (PIF) to collaborate on a deal.

There are a range of options on the table for the telco, however, including splitting TIM’s infrastructure and services assets to try and appease the group’s stakeholders, although largest shareholder Vivendi have opposed KKR’s involvement from the beginning.

Under the plan, TIM would split its services and network assets in a way that would see each assume a portion of the company’s debt according to reports in Italy.

Labriola has been in charge of TIM’s Brazillian operations since 2019 and became the frontrunner to become the new CEO after Luigi Gubitosi resigned late last year.

Labriola is expected to receive the backing of state investor CDP which is TIM’s second-largest stakeholder, holding 10% of the company.

 

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