Italy’s financial police have seized EI Towers documents relating to its failed bid for state-owned rival Rai Way, as part of a probe into alleged market manipulation.
The tax officers searched the company headquarters as part of an investigation…
Italy’s financial police have seized EI Towers documents relating to its failed bid for state-owned rival Rai Way, as part of a probe into alleged market manipulation.
The tax officers searched the company headquarters as part of an investigation initiated by Milan public prosecutors on the request of market regulator Consob.
In a statement on Tuesday, EI Towers, which is 40% owned by former prime minister Silvio Berlusconi’s Elettronica Industriale, itself a subsidiary of the Mediaset group, denied any wrongdoing, It added that the company and its directors have always acted within the law, providing transparent and detailed information to the market.
Last February, the tower operator launched a €1.2bn (US$1.4bn) offer for a minimum 66.67% stake, later reduced to 40%, in listed RaiWay, which is 65.07% owned by state broadcaster Rai.
However, it had to withdraw its bid in mid-April, amid political and regulatory opposition.
Rai also objected to EI Towers’ offer, which was aimed to create a single national infrastructure player, saying that it would have not accepted it “by any measure”.
According to analysts, a merger between the two towercos would have made perfect sense strategically. However, they believe the government opposed the deal to target Berlusconi, who in 2001 blocked US towerco Crown Castle’s US$380m bid for 49% of Rai Way, since it would have harmed Mediaset.
