CVC running its eye over reorganisation at Italy's TIM

MILAN (Reuters) -CVC Capital Partners has been looking at the reorganisation under way at Telecom Italia (TIM) for some time but has taken no decision on its next move, a spokesperson for the private equity firm said on Wednesday.

TIM, Italy's largest telecoms group, has already received an approach from U.S. fund KKR about a 10.8 billion euro ($11.8 billion) potential offer.

Italian press reported earlier on Wednesday that private equity group CVC was interested in the services arm of TIM once a plan to split the phone group's network from the rest of the business was completed.

"CVC has been analysing for some time a possible scenario of industrial reorganisation at TIM to identify solutions to help the relaunch of the group... no decision has been taken," the spokesperson said.

A source confirmed that CVC had been looking at the services business in particular.

TIM said this month that it would start formal talks with KKR almost four months after receiving an initial approach.

In a letter sent last week, TIM sought clarification of KKR's plans for the debt-laden telecoms group and the structure of its offer, sources familiar with the matter said.

"We are expecting a reply from KKR any moment now," TIM Chairman Salvatore Rossi said at an event in Rome on Wednesday.

TIM shares traded 1.2% higher at just over 0.30 euros at 1325 GMT, well below the 0.505 euro price at which the KKR approach was pitched.

TIM is also exploring a possible tie-up with state-backed broadband rival Open Fiber as it pursues an internal restructuring under new CEO Pietro Labriola.

(Reporting by Stephen Jewkes and Elvira PollinaWriting by Keith Weirediting by Giulia Segreti and Louise Heavens)