KKR offered to take on extra costs, staff to sweeten TIM bid-sources

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KKR offered to take on extra costs, staff to sweeten TIM bid-sources
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Bruce Cockburn: 50 years of music, spirituality and social justice | SaltWireMILAN - U.S. fund KKR has strived to structure its offer for the fixed line of Telecom Italia in a way that would help the phone group more easily sustain its business after parting ways with its most valuable asset, two sources close to the matter said.

KKR is already an investor in TIM's grid. The Treasury also plans to buy 20% of the network for up to 2.2 billion euros. KKR has also offered to sustain a number of extraordinary costs under a 20-year supply contract regulating the relation between the network company, dubbed NetCo, and TIM's remaining service operations, the sources said.

The sources said the non-monetary terms KKR offered could add 1 billion euro to the value of its proposal.NetCo would take on some 21,500 workers, more than half of TIM's domestic staff, a higher number than envisaged by an earlier, non-binding bid, the sources said.

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