MILAN, Nov 30, Reuters -- U.S. fund KKR proposes to buy Telecom Italia TIM, and includes a letter of commitment by JPMorgan to support the 45 billion euros $51 billion financing needed for the deal, Italian daily Il Messaggero reported.
JPMorgan said in the letter it was ready to lift its commitment above 45 billion euros if necessary.
JPMorgan and KKR didn't want to make a statement.
Sources familiar with the matter confirmed JPMorgan's role in arranging the financing for the bid. Sources said JPMorgan was advising KKR together with Citi and Morgan Stanley.
In a non-binding proposal submitted to TIM's board, KKR has set an indicative price of 0.505 euros a share, valuing Italy's biggest phone group at 10.78 billion euros or 33 billion euros, including TIM's net debt of 22.5 billion.
Il Messaggero said that 34 billion euros would be used to refinance TIM's debt under a change of control clause, with an additional 11 billion euros as a cash confirmation required by market regulators to cover the offer's equity value.
TIM had 30.7 billion euro in gross debt at the end of September.