Italy’s top audit court didn’t block a potential sale of Telecom Italia SpA’s phone network to KKR & Co., according to a statement from the Treasury.
The court hasn’t reviewed “the financial sustainability and economic rationale” of the deal as negotiations are still ongoing, the Treasury said.
An earlier report in daily La Repubblica flagged the court — known as Corte dei Conti — found the terms of the transaction aren’t “adequate.” The court’s opinion isn’t binding, Repubblica says.
The KKR bid — which values the network at about €23 billion ($24 billion) including some earn-outs — has the backing of the Italian government but needs to be reviewed by the audit court as the Finance Ministry would take up to a 20% stake in the grid unit for as much as €2.5 billion.
Separately, Telecom Italia’s largest shareholder, Vivendi SE, denied reports in the local press that indicate there are different opinions amid the company’s top executives over the KKR deal.
Read More: Vivendi Seeks Telecom Italia Shareholder Vote on KKR Grid Offer
“We want to express our position officially” at either a shareholders meeting or an extraordinary meeting, Vivendi Chief Financial Officer Francois Laroze said on an analyst call Thursday.
--With assistance from Daniele Lepido and Chiara Albanese.
