by Elvira Pollina and Giuseppe Fonte

MILAN (Reuters) – The board of Italy’s Caisse des Depots (CDP) is due to meet on Sunday to approve a non-binding multibillion-euro bid for the fixed network of former telephone monopoly Telecom Italia (TIM) , according to three sources familiar with the matter.

CDP has teamed up with the Australian fund Macquarie to make an offer on Italy’s largest telecommunications infrastructure, for which the American fund KKR has already presented an offer.

According to one of the sources, CDP board members were due to meet at 14:00 GMT to approve the offer.

TIM had not revealed the amount proposed by KKR but a source familiar with the matter said that it valued the infrastructure in Italy at 20 billion euros.

CDP’s bid would also involve TIM’s smaller fiber optic network, Open Fiber, which is owned by CDP and Macquarie and which would eventually be integrated into TIM’s network.

Italian Council President Giorgia Meloni’s government has repeatedly said it wants to gain control of the TIM network while protecting jobs.

Under Italian rules, Rome has the power to block any bid on strategically important assets such as TIM’s network.

CDP’s offer is welcome because it makes the sale process more transparent but it leaves several scenarios open, said a government source.

(Written by Valentina Za; Kate Entringer)

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