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(Bloomberg) — Italy has authorized the successful sale of Telecom Italia SpA’s steady network to KKR
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Telecom Italia shares rose as much as 3% in early trading in Milan on Wednesday, giving the company a market share of 6. 3 billion euros.
The government led by Prime Minister Giorgia Meloni has chosen not to use its so-called golden power — which allows it to block or impose strict situations on transactions involving strategic assets — because KKR has adhered to situations aimed at protecting the network, the companies said in a statement on Wednesday.
Though widely expected, the decision is a key step toward finalizing a deal, due to be closed by this summer, that would see the ex-phone monopolist cede control of its most valuable asset.
The terms of the deal give Rome a role in “strategic decisions similar to those of the network,” it said in a separate statement. The state will also maintain “oversight of all aspects of security. “
The green light marks a victory for CEO Pietro Labriola, architect of the network’s sale plan, as the planned transaction is the centerpiece of his campaign to recover the company’s debt of some 30 billion euros.
Read more: Telecom Italia approves sale to KKR in €22 billion deal
Last year, U. S. personal equity firm KKR made a company offer valuing the network at around 22 billion euros, adding some profits, other people familiar with the matter said, and Italy’s finance ministry kept up to 20% of the network’s capital. unit to be monitored.
(Updates with actions, government paragraph for the time being. )
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