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KKR Bids for Telecom Italia Grid Stake as Spinoff Rekindled

  • KKR is valuing secondary network at as much as $8 billion
  • Private equity firm could help with bid for Open Fiber
The headquarters of Telecom Italia SpA in Rozzano, near Milan, Italy. 

The headquarters of Telecom Italia SpA in Rozzano, near Milan, Italy. 

Photographer: Alessia Pierdomenico/Bloomberg

Updated on

Private equity giant KKR & Co. submitted an expression of interest for a minority stake in Telecom Italia SpA’s landline network, people familiar with the matter said, in a move that could allow the ex-phone monopoly to achieve the long-planned spinoff of part of its grid.

KKR may buy as much as 49% of the landline’s “secondary network” of copper and fiber lines that run from street cabinets to premises, the people said. The whole of this network was valued by the U.S. investment firm at 7 billion euros ($7.6 billion) to 7.5 billion euros, they said.