Telecom Italia receives good signals from the EU antitrust office regarding the sale of the network

ROME (Reuters) – Telecom Italia (TIM) is receiving positive signals from European Union antitrust authorities as it considers a landmark sale of its fixed-line access network to U.S. fund KKR, the former chairman of the telephone monopoly said on Tuesday.

WHY IT’S IMPORTANT

TIM has agreed to sell its domestic network to KKR for up to 22 billion euros ($23.9 billion) as part of a government-backed plan to reduce debt and restart the group’s operations.

The transaction is subject to approval by the EU antitrust authority. TIM expects to complete the transaction around mid-year, and any delay could complicate the company’s reorganization.

KEY QUOTES

“The feedback from the EU antitrust authority is positive, so we hope to finalize the transaction by the end of June,” President Alberta Figari told reporters on the sidelines of an event in Rome.

CONTEXT

The European Union Commission has set a deadline of May 30 for a preliminary assessment of the agreement. KKR is expected to win unconditional approval after agreeing to honor trade agreements with TIM rivals, people with knowledge of the matter told Reuters last week.

($1 = 0.9195 euros)

(Reporting by Matteo Negri, writing by Elvira Pollina; editing by Keith Weir)