Mediaset-controlled towerco EI Towers has officially shelved plans to acquire state-owned rival Rai Way amid political opposition to the deal.
In a statement, EI Towers, which is 40% owned by former prime minister Silvio Berlusconi’s Elettronica…
Mediaset-controlled towerco EI Towers has officially shelved plans to acquire state-owned rival Rai Way amid political opposition to the deal.
In a statement, EI Towers, which is 40% owned by former prime minister Silvio Berlusconi’s Elettronica Industriale, itself a subsidiary of the Mediaset group, said its board acknowledged that “conditions are not in place to proceed with the offer”.
Last week, the operator withdrew its merger filing with competition authority AGCM.A number of market observers told TelecomFinance that while a merger between EI Towers and Rai Way makes perfect strategic sense, it is unlikely to take place in the short term, pointing to widespread government opposition.
Earlier this month market regulator Consob suspended its deal review, saying it could not proceed unless EI Towers filed a new offer document. This followed the operator’s decision to reduce the minimum stake threshold for its bid from 66.67% to 40% in order to secure regulatory approval.
Rai Way’s parent, state broadcaster Rai, which describes its 65.05% stake in the listed towerco as strategic, said in a statement it would not accept EI Towers’ offer “by any measure” and does not intend to delist the company, as the bidder had proposed in its tender document.
The government has also repeatedly opposed the project, arguing that, due to the strategic importance of the network infrastructure, it must retain a minimum 51% stake.
Having failed to strike a deal with Rai, EI Towers, which expressed a firm interest in growing via M&A in its latest strategic plan, could turn its attention to Telecom Italia (TI)’s tower spinoff Inwit, which is due to list by the summer, with TI retaining a 60% stake.
Alternatively, it could scout overseas, but is less likely due to a lack of synergies and its domestic broadcasting presence via Mediaset.
