Italy to have veto powers on KKR’s network venture

MILAN: Italy’s Treasury will have veto powers concerning strategic issues involving the fixed-line network of Telecom Italia (TIM), as part of an agreement with KKR to take over the group’s infrastructure.

The powers will include being able to appoint the chair of a newly created company, dubbed Optics HoldCo, that will fully own the infrastructure, according to two sources briefed on the matter.

Approved by TIM’s board in December and cleared by Italy’s government this month, the deal values the network up to 22 billion euros ($23.83 billion), and establishes a wholesale-only player to provide broadband capacity to TIM and other telecoms operators.