Telecom Italia S.p.A. (BIT:TIT) (TIM) said on December 6, 2021 it has picked The Goldman Sachs Group Inc. (NYSE:GS) and LionTree Advisors, LLC to advise Italy's biggest telcoms group on the takeover approach by KKR & Co. Inc. (NYSE:KKR) . KKR made its non-binding offer for TIM, just before a boardroom row forced group Chief Executive Officer Luigi Gubitosi to step down following a clash with Vivendi (VIV.PA) after two profit warnings since July 2021.

A wide range of banks pitched for an advisory role in what would be Europe's biggest ever private equity deal worth €33 billion ($37.3 billion) including debt. TIM said in the statement the advisers would help the company in also assessing any potential "strategic alternatives" to develop the group. KKR's offer is conditional on support from TIM and the Italian government, as well as a four-week due diligence which will need a green light from the company's board due to meet on December 17, 2021.

But the management upheaval and division within the group has complicated decision-making, sources have said. KKR's approach received a cold response from Vivendi SE (ENXTPA:VIV), which faces a large capital loss on its 24% TIM stake at the €0.505 per share offered by the U.S. fund. Reversing a long-standing stance, the French media giant said it was open to handing control of TIM's fixed network to the state as part of "an institutionally guided strategic project".

Over the weekend, the Italian press reported a meeting between Vivendi and Treasury-owned investor Cassa depositi e prestiti S.p.A. (CDP), TIM's second-largest shareholder, over a possible alternative plan to KKR. Two sources close to the matter told Reuters that Vivendi was trying to build an alliance with CDP. Vivendi and CDP declined to comment.

However, Draghi is not actively involved in talks at present and there are contrasting views within the government over the best course of action over TIM, political sources said on December 6, 2021.