KKR (NYSE:KKR) is considering teaming up with CVC Capital Partners in its bid for Telecom Italia (OTCPK:TIIAY)(NYSE:TI.A), a move that would split the financial burden for Europe's largest leveraged buyout between the two private equity giants, Bloomberg reports, citing people with knowledge of the matter.
Shares of Telecom Italia rise 1.3% in trading in Milan on Friday.
CVC was exploring an acquisition of Telecom Italia (OTCPK:TIIAY) for several months, the people told Bloomberg. The two private equity companies are still considering the pros and cons of teaming, and a joint proposal isn't assured.
Bloomberg also reported that Advent International, which had been in talks to team up with CVC on a potential bid, isn't eager to proceed because of the complicated nature of the deal and the Italian government's perceived support for the KKR (KKR) bid.