KKR offer prompts Telecom Italia board showdown over CEO's future

KKR offer prompts Telecom Italia board showdown over CEO's future ...

Tutosi said he was ready to leave as the chief executive if that would speed their decision over KKR's takeover proposal. - Telecom Nowalia faces another boardroom showdown as an assistant.

The board of Telecom Italia (TIM) whose meeting on Friday will be on Thursday, tomorrow, discuss the impact of a soccer rights deal that failed to boost revenue and contributed to two profit warnings at Italy's biggest phone group since July.

TIM audits have expanded a $1 billion euro deal Gubitosi has struck with DAZN to stream Italian's top-flight soccer games on Thursday and two sources close to the matter told Reuters they had raised fresh concerns.

One of the sources said that further downgrade to TIM's financial outlook may not be ruled out. It's based on debts equal to half its core profit.

Last week, the company's debt rating, already classified as junk, was cut further by the S&P rating agency.

AJ R rushed to submit its offer following the downgrade, two other close to the matter said, adding TIM was in danger of breaching bank agreements.

Gubitosi has offered to turn down his executive powers without going out of the job.

The boss must take responsibility for the role, or maybe the board member should resign for the new CEO to get a seat for the new CEO.

In a letter that the board said, which he saw on the copy of a copy was seen by Reuters, Gubitosi criticised the directors for stalling on the KKR offer - to please some of the group's shareholders.


During the year 2014, Gubitosi and Viendi were facing a backdrop of the latest boardroom crisis, as the upcoming CEOs of TIM have had three CEOs. The French media company began building its two4% stake.

Gubitosi wrote an interview in which he rejected speculation that he's close to KKR, and asked the board to grant the New York-based fund access to company data and to hire appoint advisers.

TIM's board examined the non-binding proposal of 10.8 billion euro ($12 billion) for KKR to take it privat on Sunday.

The KKR stowed 33 billion euros and swung it up to the total of 31 billion euros and approved a three-week due diligence analysis.

Gubitosi first brought KKR to the United States last year, striking a 1.8 billion euro deal that gave the fund a 37.5% stake in TIM's so-called last-mile network to homes.

The takeover offer for TIM is coming as Italy prepares to spend 6 billion euros of the EU recovery fund to accelerate ultrafast broadband deployment across the country.

Rome says that its position on the KKR proposal will depend on the plan for the network.

Rome has special powers to block strategic companies such as TIM but the executive of a Prime Minister has called the interest of KKR as good news for Italy.

Sources claim KKR, which consulted the government before it filed its proposal, plans to bring out the network and give the state investment - currently TIM's second-biggest shareholder - a leading role in overseeing the asset.

($1 = 0,8874 euros)

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