Italian tower operator EI Towers has agreed to reduce the minimum stake threshold for its bid for state-owned rival RaiWay from 66.67% to 40%.
In a statement on Friday responding to a letter from market regulator Consob, EI Towers said all the other…
Italian tower operator EI Towers has agreed to reduce the minimum stake threshold for its bid for state-owned rival RaiWay from 66.67% to 40%.
In a statement on Friday responding to a letter from market regulator Consob, EI Towers said all the other conditions of its February offer will remain unchanged. It reiterated that the bid is not “hostile” as it is based on an industrial plan that in its view could benefit both operators.
The company, which is 40% owned by former prime minister Silvio Berlusconi’s Elettronica Industriale, a subsidiary of the Mediaset group, also reserved the right to amend any other terms in the future if required.
EI Towers launched its cash-and-stock offer for a minimum 66.67% stake in RaiWay with the aim of creating a national infrastructure player. However, the government repeatedly said that, due to the “strategic importance of network infrastructure”, the state must retain a minimum 51% stake in RaiWay, which was listed in November.
State broadcaster Rai, which holds 65.07% in RaiWay, has also opposed the “inadmissable” offer.
In a letter to Consob attached to its press statement, EI Towers claimed that it had no obligation to reduce the minimum threshold for its bid, since “there is no law requiring that 51% of the share capital of Rai Way remains under the control of the public sector”.
“Consistently with this, the offer and listing prospectus on Rai Way shares did not contain any reference to the existence of restrictions such that RAI retains a controlling interest in Rai Way,” EI Towers said.
The Mediaset-controlled operator also added that for the time being, it has no plans to negotiate the offer terms with Rai Way or its parent, although it is open to discussions, should the target reconsider its position.
Antitrust watchdog AGCM, which has launched a separate 45-day investigation into the bid in order to assess its potential implications for the Italian radio and broadcasting infrastructure sector, is due to listen to both EI Towers and RaiWay representatives at a hearing on 14 April.
