Swiss mobile operator Swisscom has reiterated that no decision has been made to acquire the 18% it does not already own in Italian broadband business Fastweb.
This follows following intense speculation about a possible delisting of the subsidiary.
In a…
Swiss mobile operator Swisscom has reiterated that no decision has been made to acquire the 18% it does not already own in Italian broadband business Fastweb.
This follows following intense speculation about a possible delisting of the subsidiary.
In a statement published on Swisscom’s website, the company said: “Buying out minority shareholders of Fastweb has pros and cons. Whereas we are convinced it would be a good investment to own 100% instead of the current 82%, a buyout would also consume part of our limited financial capacity”.
“We have to weigh the option to buy the minorities against the alternatives, and have not reached a decision on this matter.”
Fastweb’s stock was suspended yesterday following excessive gains, with shares soaring more than 10% at one point. The shares closed at E13.30 on September 1, up from E11.26 the day before.
Swisscom increased its stake in Fastweb in the first half of 2007 from a previously acquired 1.7% to 82.4% for a total of E4.2bn. Swisscom was advised on the deal by Credit Suisse, while Fastweb was advised by Deutsche Bank and Unicredito Bank.
Fastweb is currently being probed over an alleged E2bn money laundering scam, which also involves Telecom Italia’s Sparkle.
Seven executives from the two companies, including Fastweb founder Silvio Scaglia and CEO Stefano Parisi, are to be questioned at a trial starting on November 2.
