Italy’s financial police have seized EI Towers documents relating to its failed bid for state-owned broadcaster Rai Way, as part of a probe into alleged market manipulation.
The tax officers searched the Italian towerco’s headquarters as part of an…
Italy’s financial police have seized EI Towers documents relating to its failed bid for state-owned broadcaster Rai Way, as part of a probe into alleged market manipulation.
The tax officers searched the Italian towerco’s headquarters as part of an investigation initiated by Milan public prosecutors on the request of market regulator Consob.
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 in a statement on Tuesday. It added that the company and its directors have always acted within the law, providing transparent and detailed information to the market.
In February, the group launched a €1.2bn (US$1.4bn) offer for a minimum 66.67% stake – later reduced to 40% – in listed Rai Way, which is 65.07% owned by state broadcaster Rai.
However, it withdrew its bid in mid-April amid political and regulatory opposition.
Rai also objected to EI Towers’ offer, which was aimed at creating a single national infrastructure player, saying 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.