Telecom Italia’s logo for the TIM trace is considered on a building in Rome, Italy, April 9, 2016. REUTERS/Alessandro Bianchi/File Photo

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  • Diagram is to lag off mounted line, slouch it as govt-regulated asset
  • KKR targets TIM-Open Fiber grid merger but decision with govt
  • Embattled TIM CEO pushing to revive single-community diagram
  • Rival CVC, Advent additionally launch to finding out resolution for TIM

MILAN, Nov 21 (Reuters) – Telecom Italia (TIM) (TLIT.MI) said on Sunday its board had examined a non-binding proposal by U.S. fund KKR (KKR.N) aimed at taking Italy’s most intelligent mobile phone neighborhood inner most that valued it at 10.8 billion euros ($12 billion).

KKR’s proposal, which might perhaps perhaps perhaps supply a 45.7% top rate versus the closing ticket of TIM’s unparalleled shares on Friday, comes as TIM’s CEO Luigi Gubitosi battles for survival after coming below fireplace from high investor Vivendi (VIV.PA) following two income warnings in three months.

Gubitosi brought KKR onboard final one year in a 1.8 billion euro deal that handed the Novel York-primarily based fully fund a 37.5% stake in FiberCop, the unit holding TIM’s final-mile community connecting avenue cupboards to folk’s properties.

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TIM’s mounted line swap is its most prized asset and is deemed strategic by Rome, which has powers to dam any unwanted strikes.

Unable to stem TIM’s income haemorrhage, Gubitosi has started taking a inspect at ways to squeeze money out of TIM’s property, revisiting significantly a diagram to merge TIM’s mounted-line grid with that of fibre optic rival Open Fiber.

Subsidized by the outdated authorities, that project had slouch aground below Prime Minister Mario Draghi.

The PM’s attach of abode of business said it turn into once following the distress.

The authorities is responsive to the must shore up the debt-laden neighborhood at a time when it wishes to step up investments, and offer protection to its 42,500 home workers, sources beget said.

KKR’s diagram would inquire TIM nick out its mounted community to be slouch as a authorities-regulated asset along the model extinct by energy grid company Terna (TRN.MI) or gas grid firm Snam (SRG.MI), two sources end to the topic said earlier on Sunday.

Individually inner most equity corporations CVC and Advent studied that you just might perhaps perhaps perhaps also judge of plans for TIM, working with well-liked TIM CEO Marco Patuano, now a senior adviser to Nomura (7131.T) in Italy.

A spokesperson for the 2 funds said they were launch to working with all stakeholders on a resolution to toughen TIM.

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Extra reporting and writing by Valentina Za; editing by Andrew Heavens, David Evans and Keith Weir

Our Requirements: The Thomson Reuters Trust Tips.

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