Telecom Italia (TIM) (TLIT.MI) has turned down a request from KKR (KKR.N) to conduct due diligence on its business since the American hedge fund has yet to make a formal proposal for the company, according to TIM.
KKR made a non-binding bid to TIM in November, valuing the firm at 10.8 billion euros ($11.76 billion), but the company only decided to initiate talks last month.
“Should KKR submit a deliverable, full, and compelling offer,” TIM said in a statement, “the TIM Board of Directors will review its decision in the best interests of all shareholders.”
According to the statement, “in the end, KKR confirmed its interest in exploring any future transactions in the best interests of the company, its shareholders, and Italy.”
KKR has already made a financial commitment to TIM’s fixed-line last-mile network.
In a letter to TIM, KKR stated that it remained interested in purchasing the company, but that it would not confirm a bid without access to TIM’s books because market conditions had altered due to the Ukraine conflict.
Since the initial approach late last year, TIM’s outlook has been lowered, and it has received a series of credit rating downgrades.