09:12 AM EDT, 10/16/2025 (MT Newswires) -- KKR (KKR) has chosen to forgo dividends from its Italian network operator FiberCop after accelerated customer losses, casting doubt on the 22 billion euro ($25.63 billion) Telecom Italia carve-out, The Financial Times reported Thursday, citing internal documents and a person familiar with the matter.

FiberCop reportedly shed 364,000 lines in H1, leading to a halt in distributions to investors, including Italy's finance ministry and the Abu Dhabi Investment Authority.

Internal documents had envisaged payouts starting last December, the report said. A person close to the investment firm said it was choosing to reinvest into FiberCop with the view that its ability to return money to investors will be greater once the network rollout completes in 2027, the report said.

The weaker performance is also complicating KKR's resistance to a government-backed merger of FiberCop with state-controlled Open Fiber, with terms seen as unfavorable to FiberCop, the news outlet reported.

KKR did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)