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Telecom Italia, on Sunday approved the sale of its fixed-line network to KKR for €19bn ($20bn). The company’s board had started reviewing the offer on Friday and approved it on Sunday. Italy’s government has authorised the Treasury to spend up to €2.2bn to take a 20% stake in the network alongside KKR as the asset is deemed of national strategic importance. According to the company, the deal should close by summer of 2024 and would allow the group to reduce its financial debt by €14bn. The company will not be putting the board’s decision to a shareholder vote. Vivendi, largest shareholder of Telecom Italia, questioned the sustainability of the leftover business and considered the board’s decision as ‘unlawful’.
Telecom Italia’s euro-denominated bonds traded stable with its 6.875% 2028s trading at 100.1, yielding 6.84%.
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