# Macquarie raising hurdles to CDP joining KKR bid for Telecom Italia grid, sources say Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-05-16 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Macquarie raises hurdles to CDP joining KKR bid for Telecom Meta Description: Macquarie raises legal issues over state lender CDP teaming up with U.S. fund KKR in bid for Telecom Italia's landline grid, sources say. URL: https://financedigest.com/macquarie-raising-hurdles-to-cdp-joining-kkr-bid-for-telecom-italia-grid-sources-sayhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-05-15t201242z1lynxmpej4e0t3rtroptp4telecom-italia-m-a-kkr-1736814013190-compressed.jpg) # Macquarie raising hurdles to CDP joining KKR bid for Telecom Italia grid, sources say By Elvira Pollina and Giuseppe Fonte MILAN (Reuters) -Australian fund Macquarie is raising legal hurdles over a plan backed by Italy’s Treasury for state lender CDP to join forces with U.S. fund KKR in a deal to buy [Telecom Italia’s landline grid](https://www.financedigest.com/telecom-italia-boosted-by-rival-offer-for-landline-grid.html "Telecom Italia boosted by rival offer for landline grid") (TIM), three sources said on Monday. TIM directors have [set a final deadline of June 9 for potential improved offers](https://www.financedigest.com/erm-advanced-telematics-set-to-expand-its-offering-for-vehicle-manufacturers-and-importers.html "ERM Advanced Telematics set to expand its offering for vehicle manufacturers and importers") by the U.S. private equity firm and a rival consortium comprising CDP and Macquarie, worth 21 [billion euros](https://www.financedigest.com/amazon-com-to-invest-over-1-billion-euros-in-european-electric-van-truck-fleet.html "Amazon.com to invest over 1 billion euros in European electric van, truck fleet") ($23.1 billion) and 19.3 billion euros respectively. [Telecom Italia](https://www.financedigest.com/telecom-italia-in-talks-with-unions-on-up-to-2000-job-cuts-in-italy.html "Telecom Italia in talks with unions on up to 2,000 job cuts in Italy") has deemed both inadequate. People familiar with the matter told Reuters this month the Treasury would welcome CDP joining forces with KKR for TIM’s prized grid, with one source saying the ministry was pushing for CDP to drop its separate proposal. But Macquarie is now raising legal issues about a possible alliance between CDP and KKR, three [sources close](https://www.financedigest.com/siemens-energy-close-to-selling-stake-in-windar-renovables-source.html "Siemens Energy close to selling stake in Windar Renovables – source") to the matter told Reuters on Monday. CDP and Macquarie are co-investors in Open Fiber, a smaller rival to TIM. According to the sources, some clauses included in the Open Fiber shareholder pact could give the Australian fund some leeway to complicate any CDP decision to drop the alliance with Macquarie and join KKR’s proposal. One of them said Macquarie was aiming to improve its [offer with CDP ahead](https://www.financedigest.com/mfe-offers-to-buy-1-05-stake-in-mediaset-espana-from-vivendi-ahead-of-delisting.html "MFE offers to buy 1.05% stake in Mediaset Espana from Vivendi ahead of delisting") of the June 9 deadline. A source close to CDP said the state lender was still [working with Macquarie to respond to some clarifications Telecom Italia had requested over its latest](https://www.financedigest.com/westminster-works-latest-housing-jewel-in-digbeths-crown.html "Westminster Works – Latest housing jewel in Digbeth’s crown ") offer, adding no decision has been taken yet. Separate sources with knowledge of the matter had said this month KKR had expressed its willingness to work further on its bid. The sale of TIM’s most valuable [asset is the main option for the phone group](https://www.financedigest.com/senior-ripple-veteran-vijay-chetty-joins-sharespost-digital-assets-group.html "Senior Ripple Veteran Vijay Chetty Joins SharesPost Digital Assets Group") to cut its cash-bleeding company’s 26 billion euro debt pile. [Prime Minister](https://www.financedigest.com/economist-odor-picked-as-slovakias-caretaker-prime-minister.html "Economist Odor picked as Slovakia’s caretaker prime minister") Giorgia Meloni’s administration will a have a say on any deal as Rome can use its so-called “golden power” regulation to set conditions or block attempts to take over strategic assets such as TIM’s network. ($1 = 0.9084 euros) (Reporting by Elvira Pollina in Milan and Giuseppe Fonte in Rome; Editing by Alison Williams) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---