KKR faces accusation of misleading EC over TIM deal
The European Commission (EC) flagged concerns KKR may have provided incorrect or misleading information during its investigation into a deal for Telecom Italia’s (TIM) fixed network assets led by the company in 2024.
In a Statement of Objections document, the regulator cited concerns about responses submitted by the investment company on wholesale access agreements.
The EC explained following a probe into the issue sparked by complaints from operators it holds the preliminary view KKR “at least negligently, submitted incorrect and/or misleading information on the terms of its existing long-term agreements”.
Its accusation centres on a claim terms in existing contracts would continue to apply post-acquisition, since they could only be changed in agreement with third-party operators.
This policy being in place, it believed, would ensure “KKR will not be able to deteriorate the conditions for wholesale access or terminate such access”, the regulator added.
EC asserted information on this issue was key in its assessment of the proposed deal at the time.
However, following the buyout the regulator received complaints from third-party operators claiming the wholesale provider, FiberCop, had increased the price.
EC EVP for clean, just and competitive transition Teresa Ribera said: “Effective merger control depends on companies providing the commission with correct information.”
She continued: “KKR appears to have provided incorrect or misleading information about whether it would keep its existing long-term access agreements under the same terms unless mutually agreed otherwise with the third-party operators. Our evidence suggests that, after the merger, KKR may have raised prices for existing wholesale broadband customers, in some cases significantly.”
A KKR spokesperson told Mobile World Live it “strongly disagrees with the European Commission’s preliminary assessment. We stand by the accuracy of the information provided during the commission’s 2024 review”.
“We will vigorously challenge these preliminary allegations in our response to the Statement of Objections, while continuing to engage constructively with the commission. The Statement of Objections is not a final finding of infringement, and the commission’s existing clearance of the transaction remains valid.”
The post KKR faces accusation of misleading EC over TIM deal appeared first on Mobile World Live.