Italy’s Audit Court does not find the terms of transaction in the sale of Telecom Italia SpA’s phone network to KKR & Co adequate, but it has not yet blocked the deal, according to a report by Bloomberg.
Citing a statement from the Italian treasury, the report said that the court hasn’t reviewed “the financial sustainability and economic rationale” of the deal as negotiations are still ongoing, and its opinion on it being inadequate so far aren’t binding.
KKR has valued the network at €23bn (including some earnouts), and while it has the backing of the Italian government, the deal needs to be reviewed by the audit court- as the state’s Finance Ministry is set to take up a 20% stake in the Telecom Italia SpA grid unit.
