Italy’s TIM seeks final offer for grid by June 9

Shares in Telecom Italia rose around 4% in early trading on Friday as the board of the phone group set a final deadline of June 9 to receive an improved offer for its prized landline grid from at least one of its suitors.

TIM directors met on Thursday to draw up a response to rival approaches for its landline grid from KKR and a consortium comprising state lender CDP and fund Macquarie, worth 21 billion euros and 19.3 billion euros, respectively.

In a statement after the board meeting, TIM said it deemed the bids “not yet adequate”, adding at least one of the bidders had expressed its readiness to improve its non-binding offer.

Three sources with knowledge of the matter said KKR was willing to work further on its bid terms. KKR declined to comment.

TIM shares were 4% higher at 0713 GMT compared with a 0.6% drop in Italy’s blue chip index. Reuters