KKR eyes further investment in Telecom Italia’s fixed-line assets: Sources

MILAN: Private equity firm KKR is eyeing a further investment in Telecom Italia’s fixed-line network as Italy’s main telecoms group weighs options for its assets in an effort to appease top investor Vivendi, three source close to the matter said.

Telecom Italia’s (TIM) CEO Luigi Gubitosi is under siege by Vivendi, after TIM issued two profit warnings in three months, cutting its free cash flow outlook and stoking concerns about its 22 billion euros ($25 billion) in net debt.

With a plan to merge TIM’s core fixed-line assets with those of state-backed rival Open Fiber on hold, Gubitosi has been reviewing other options to raise money from TIM’s assets while the company wrestles with ferocious competition on its home turf.