A board meeting will take place on May 4 where Labriola will officially make the proposal.
The sale of Sparkle, TIM’s landline grid and submarine unit is a key part of Labriola’s plan to reduce the company’s US$27.6 billion debt and revive its domestic business.
Sources add that Vivendi, which owns a 23.8% stake in TIM has been putting pressure on Labriola to draw a line under the ongoing bidding process, given the large valuation gap.
Vivendi also reportedly has concerns over the sustainability of TIM’s remaining service business.
The landmark deal sparked fury from Vivendi, which slammed the deal which was approved 11-3 by the board in a vote.
“Vivendi deeply regrets that TIM’s Board of Directors accepted KKR’s offer to buy TIM’s network without first informing and requesting a vote from its shareholders, thus contravening applicable governance rules,” Vivendi said in a statement.
KKR had also made a non-binding offer for TIM’s subsea cable business but this bid was rejected.
A deadline of December 5 has been imposed for KKR to submit a revised bid for the unit.
