* Goal is to spin off fixed line, run it as govt-regulated
asset
* KKR targets TIM-Open Fiber grid merger but decision with
govt
* Embattled TIM CEO pushing to revive single-network plan
* Rival CVC, Advent also open to studying solution for TIM
(Recasts following TIM statement)
By Elvira Pollina, Valentina Za and Pamela Barbaglia
MILAN, Nov 21 (Reuters) - Telecom Italia (TIM)
said on Sunday its board had examined a non-binding proposal by
U.S. fund KKR aimed at taking Italy's biggest phone
group private that valued it at 10.8 billion euros ($12
billion).
KKR's proposal, which would offer a 45.7% premium versus the
closing price of TIM's ordinary shares on Friday, comes as
TIM's CEO Luigi Gubitosi battles for survival after coming under
fire from top investor Vivendi following two profit
warnings in three months.
Gubitosi brought KKR onboard last year in a 1.8 billion euro
deal that handed the New York-based fund a 37.5% stake in
FiberCop, the unit holding TIM's last-mile network connecting
street cabinets to people's homes.
TIM's fixed line business is its most prized asset and is
deemed strategic by Rome, which has powers to block any unwanted
moves.
Unable to stem TIM's revenue haemorrhage, Gubitosi has
started looking at ways to squeeze money out of TIM's assets,
revisiting in particular a plan to merge TIM's fixed-line grid
with that of fibre optic rival Open Fiber.
Sponsored by the previous government, that project had run
aground under Prime Minister Mario Draghi.
The PM's office said it was following the situation.
The government is aware of the need to shore up the
debt-laden group at a time when it needs to step up investments,
and protect its 42,500 domestic workers, sources have said.
KKR's plan would see TIM carve out its fixed network to be
run as a government-regulated asset along the model used by
energy grid company Terna or gas grid firm Snam
, two sources close to the matter said earlier on
Sunday.
Separately private equity firms CVC and Advent studied
possible plans for TIM, working with former TIM CEO Marco
Patuano, now a senior adviser to Nomura in Italy.
A spokesperson for the two funds said they were open to
working with all stakeholders on a solution to strengthen TIM.
(Additional reporting and writing by Valentina Za; editing by
Andrew Heavens, David Evans and Keith Weir)
Vodafone (VOD)