SEXIMO

Italy views an offer from private equity fund KKR & Co. for Telecom Italia SpA as too low, people familiar with the matter said, as the government led by Mario Draghi reviews plans to create a single national ultra-broadband network.

Telecom Italia’s board last month gave Chief Executive Officer Pietro Labriola a mandate to maximize the value of the company’s infrastructure assets. That plan is aimed at spinning off the carrier’s landline network into a new unit focused on wholesale services, and gaining a solid revenue stream from regulated tariffs, people familiar with the matter said at the time. It could also see all of Telecom Italia’s commercial services spun off into a separate unit.

Labriola also aims to revive the company’s attempt to merge with smaller, state-backed rival Open Fiber SpA -- in a long-delayed bid to build a single national phone network and avoid billions of euros in duplicate investments, people familiar with the matter said last month. The project is in line with the government’s desire to build a single fiber-network infrastructure to boost digital services, they said.

Bloomberg reported late last year that KKR has considered raising its offer price for Telecom Italia to around 70 cents to 80 cents per share to seal a deal.