Exclusive-KKR set for unconditional EU antitrust okay for Telecom Italia deal, sources say By Reuters

Written by Fu Yunqi and Elvira Pollina

BRUSSELS/MILAN (Reuters) – U.S. investment firm KKR is expected to receive unconditional European Union antitrust approval for the purchase. Telecom Italia (BIT:) Fixed Line Network (TIM) after agreeing to maintain commercial agreements with TIM's rivals, people with direct knowledge of the matter said.

The €22 billion ($23.9 billion) deal is significant because it represents the first time a large telecoms company in a major European country has divested its landline network, potentially paving the way for others to follow suit.

KKR did not provide compensation on Thursday, the deadline to do so, according to an update on the European Commission website on Friday.

The Commission, which set May 30 as the deadline for its initial review of the deal, said its website was updated on Thursday. KKR declined to comment.

Rivals KKR and Telecom Italia have been in negotiations for some time over maintaining their existing contracts concluded after setting up FiberCop, Telecom Italia's last-mile network unit, on the same terms and prices, the sources said.

They said an agreement on the issue would address the EU's concerns without KKR having to provide remedies, adding that the two companies were still in talks to finalize the deal.

TIM's landline network covers approximately 89% of the country's households and its fiber and cable extend over 23 million kilometers (14.3 million miles). The company is selling the network as part of a government-backed plan to reduce debt.

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