MILAN, Aug 3 Reuters Telecom Italia TIM will finalise the sale of its prized network only if service business finances remain sustainable, the head of Italy39;s biggest telecoms company told Il Sole 24 Ore newspaper on Thursday.

Debtladen TIM last month granted U.S. fund KKR an exclusivity period until the end of September to negotiate a binding bid for its landline grid on the back of a preliminary proposal worth 23 billion euros 25 billion.

The grid sale has encountered strong reservations from TIM39;s top investor, Vivendi, which is demanding a higher valuation to back a deal and raising concerns over the sustainability of the remaining service business.

With its 24 voting stake, the French media giant could throw a spanner in the works at any TIM shareholder meeting to vote on a deal.

TIM Chief Executive Pietro Labriola also said the group could consider to sell its Brazilian unit only if huge offer emerges.

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Reporting by Elvira Poliina Writing by Federica Urso Editing by Gianluca Semeraro and Mark Potter

Source Reuters