Connect with us

International Circuit

Vodafone to retain minority stake in Fastweb tie-up with Swisscom’s Italian Unit

Vodafone will likely hold a minority stake in a combined entity with Swisscom’s Italian unit Fastweb if a deal is reached on a potential tie-up of their Italian operations, three people familiar with the matter said.

Vodafone’s Chief Executive Margherita Della Valle said earlier this month the British group was in “active discussions” in Italy, days after rebuffing a proposal by rival Iliad to create a 50:50 joint venture in the country.

Multiple sources have identified Swisscom’s Fastweb as the other party in the talks.

The potential deal being discussed would see Vodafone take a minority stake in the combined entity, which would take its debt off Vodafone’s balance sheet, said the people, who declined to be named because talks are not public and are ongoing.

Spokespeople for Vodafone and Swisscom declined to comment.

Operators in Italy are studying ways to consolidate a market grappling with shrinking revenue and margins, which is depriving investors of returns on their capital. Reuters

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2024 Communications Today

error: Content is protected !!