KKR's $12 billion bid for Telecom Italia faces Vivendi opposition

France’s Vivendi SE is likely to oppose a 10.8 billion-euro ($12.2 billion) bid by U.S. private equity giant KKR & Co. for Telecom Italia SpA amid a battle over top management at the Italian phone carrier. 

Vivendi, Telecom Italia’s largest shareholder, is currently unlikely to support KKR’s offer, which it views as undervaluing the company, according to people with direct knowledge of the situation. The French company will also analyze the reasons behind the bid, including whether KKR was brought in by embattled Chief Executive Officer Luigi Gubitosi, they said. 

Gubitosi’s drive to boost premium services has failed to reverse