(FT) KKR has initiated a more than 33 billion euros buyout premium deal to take Telecom Italia private.
The deal, at 0.505 euros a share, represents about a 45% premium of Telecom Italia’s closing price on Friday. The deal values Telecom Italia at 10.7 billion euros, although the company has a market value of 7.5 billion euros.
Italy’s Treasury has lauded the deal as good for the country, with the telecoms company being one of Europe’s most valuable in the 1990s before running into crisis.
The boards of the two companies are set to approve the deal, which Telecom Italia says is intended to be friendly. The deal will also undergo four-week scrutiny and approval by the Italian government.
If approved and completed, the deal would be one of the biggest private equity buyouts involving a European company. KKR already has a 37.5% stake in Telecom Italia’s “last mile” network.
KKR: NYSE is down -0.40% on premarket, TIT: BIT is up +22.42%.
