Italian towerco EI Towers has filed documents for its €1.2bn (US$1.4bn) cash-and-stock offer for state-owned rival Rai Way with market regulator Consob.
A person familiar with the situation said the group did not amend the terms of its tender for a…
Italian towerco EI Towers has filed documents for its €1.2bn (US$1.4bn) cash-and-stock offer for state-owned rival Rai Way with market regulator Consob.
A person familiar with the situation said the group did not amend the terms of its tender for a minimum 66.67% stake, despite the group saying it was reviewing the possibility after the government sought to block the deal.
The state has said it must retain at least 51% of Rai Way because of the “strategic importance of network infrastructure”.
EI Towers, which is 40% controlled by former PM Silvio Berlusconi’s Elettronica Industriale (EI), said in response that it would review the possibility of waiving certain conditions in the offer where possible.
Consob has 15 days to examine the proposal and seek additional information if required.
Italy’s antitrust watchdog launched a 45-day probe into EI Towers’ bid last week, aimed at assessing the deal’s potential implications for the Italian radio and broadcasting infrastructure sector, in view of the “vertically integrated” nature of EI Towers’ ownership. Its ultimate parent group, Mediaset, has wider broadcast interests and is also controlled by Berlusconi.
Analysts suggest the parties could reach an agreement by reducing their respective stakes in the combined entity or involve other investors.
According to multiple reports, the government would back the creation of an infrastructure newco comprising EI Towers, Rai Way, and Milan-based dark fibre operator Metroweb, which is controlled by state-owned lender Cassa Depositi e Prestiti (CDP).
EI Towers has scheduled a shareholders meeting for 21 April to approve the renewal of its share buyback plan in connection with the transaction.
Rai Way is controlled by state broadcaster Rai and, as well as terrestrial and fibre networks, provides a free satellite platform called tivùsat that uses Eutelsat Hot Bird 9 at 13E.
