Telecom Italia shares fall in absence of CDP counter-bid for grid

Telecom Italia (TIM) shares dropped as much as 3% in early trade on Monday as a government-sponsored offer rivalling KKR’s bid for the former phone monopoly’s prized grid failed to materialise over the weekend.

Italian state lender CDP has yet to receive key government backing to submit an offer together with Australian fund Macquarie, sources familiar with the matter said, dampening speculation fuelled by media reports last week.

Telecom Italia shares fell by 2.8% by 0818 GMT against a flat Italy’s blue chips index.

CDP, which is TIM’s second largest investor, and Macquarie MQG.AX are looking to finalise an offer before Friday when the TIM board is scheduled to discuss a response to an approach from U.S fund KKRKKR.N for a controlling stake for the same asset. Nasdaq