KKR has made a €10.7bn non-binding offer for TIM, the Italian telecommunications company formerly Telecom Italia.

TIM said the US private equity firm is proposing to take TIM private by offering the telecom firm’s shareholders €0.505 for each share held.

TIM’s stocks – which last closed at €0.35 – traded 27% higher at €0.44 in mid-morning trading on Monday, valuing the company at €10.3bn. 

KKR’s offer, including debt, is reportedly worth around €33bn.

TIM said the KKR offer was “friendly” and aims at obtaining approval by TIM’s directors and support by the company’s management.

For the time being, it is conditional – among others – to an estimated four-week confirmatory due diligence, as well as clearance by key government stakeholders, TIM said.

According to TIM’s shareholders’ register, French media conglomerate Vivendi holds a 23.75% stake, Italian investment bank Cassa Depositi e Prestiti holds 9.81% and the Canada Pension Plan Investment Board has a 3.10% stake.

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