Vodafone in talks to sell Italian business to Swisscom
UK telecoms group says deal would value Italy arm at €8bn
Vodafone said it was in talks to sell its Italian arm to Swisscom in a deal that would value the business at €8bn.
The London-listed telecoms group said on Wednesday that a sale to Swisscom would deliver “the best combination of value creation, upfront cash proceeds and transaction certainty for Vodafone shareholders”.
The disclosure of the negotiations with Swisscom comes weeks after Vodafone rejected an offer for the Italian business from French billionaire Xavier Niel’s telecoms company, Iliad.
In a separate statement, Swisscom said that it intended to merge Vodafone Italia with Fastweb, its subsidiary in Italy. Both companies said there was no certainty that any transaction would be agreed.
A disposal of the Italian business would be the first major step by Vodafone’s new chief executive Margherita Della Valle towards meeting a pledge to simplify the company and exit markets where it lacks scale.
The deal would value the Italian business at €8bn on an enterprise basis and that Swisscom would pay cash.