MILAN, March 15 (Reuters) - Telecom Italia's (TIM) Chief

Executive Pietro Labriola has warned investors the company could

need to raise billions in capital if the planned sale of its

network to U.S. fund KKR collapsed, two sources briefed

on the matter said.

Labriola met a few dozen investors in Milan on Friday after

presenting a new three-year strategy last week for the company

set to emerge from the fixed network divestment. The TIM CEO

will meet other investors in London on Monday.

Labriola told the meetings TIM expected to gain necessary

approvals to complete the sale to KKR this summer as repeatedly

indicated, the sources told Reuters, requesting anonymity as the

meetings were confidential.

Asked about what would happen if the KKR deal fell through,

Labriola said cash-burning, debt-laden TIM would need to reduce

spending drastically or seek fresh capital to sustain planned

investments, the sources said.

TIM shares recorded their sharpest fall on record following

the plan's unveiling as investors fretted about debt rising

further in the short term and the new company not generating

cash before 2026, despite projected robust core profit growth.

The market reaction piles pressure on Labriola ahead of a

shareholder vote next month over whether to hand him another

mandate.

Backed by the Italian government and worth up to 22 billion

euros, the network deal is opposed by TIM's top investor Vivendi

, which has questioned the sustainability of the

remaining business.

With its 24% stake, Vivendi could stand in the way of

Labriola's reappointment if an alternative slate of board

candidates emerged ahead of the April AGM.

Any successor to Labriola would still need to finalise the

KKR deal, or else expose TIM to penalties under the accord it

sealed with the U.S. fund, one of the sources said.

(Reporting by Elvira Pollina and Elisa Anzolin; Editing by

Valentina Za)