Telecom Italia on Sunday approved an offer by US investment fund KKR for its fixed-line network, infuriating its main shareholder which vowed to contest the “illegal” decision.
The Italian telecommunications operator is seeking to sell its fixed network to pare down a huge debt pile that stands at more than 26 billion euros ($28 billion).
TIM said its board had approved the deal, whose value could reach 22 billion euros and which would reduce the debt by “around 14 billion euros”.
Its main shareholder, French media giant Vivendi, has opposed selling the network and valued it at 31 billion euros, saying KKR’s previous bids were far too low.
Vivendi said it would “use all legal means at its disposal” to contest TIM’s “illegal” decision.
Source : Yahoo