Mediaset-controlled towerco EI Towers might amend the terms of its recent offer for state-owned rival RaiWay to gain regulatory and political approval for the deal, according to local reports.
In a statement last week, EI Towers, which is 40% owned by…
Mediaset-controlled towerco EI Towers might amend the terms of its recent offer for state-owned rival RaiWay to gain regulatory and political approval for the deal, according to local reports.
In a statement last week, EI Towers, which is 40% owned by former prime minister Silvio Berlusconi’s Elettronica Industriale, a subsidiary of the Mediaset group, said that it will provide market regulator Consob with comments and relevant documents if required within ten days.
According to the statement, Consob, which suspended its 15-day review of EI Towers’ €1.2bn (US$1.4bn) bid on 26 March, said it could not approve the bid documents in their current form because, among other reasons, the offer was conditional upon the acquisition of at least 66.67% of Rai Way’s share capital.
“Such non-feasibility also applies to any condition which has the objective of obtaining a controlling stake,” the regulator pointed out.
EI Towers had previously said it was confident it could convince the regulators that its offer was valid, and compatible with EU competition laws.
Antitrust watchdog AGCM, which has launched a separate 45-day investigation into the bid in order to assess its potential implications for the Italian radio and broadcasting infrastructure sector, said that based on the preliminary review, it could not authorize the deal.
The regulator will listen to both EI Towers and RaiWay representatives at a hearing on 14 April.
EI Towers launched its cash-and-stock offer for a minimum 66.67% stake in RaiWay on 24 February with the aim of creating a national infrastructure player. However, the government has reiterated that, due to the “strategic importance of network infrastructure”, the state must retain a minimum 51% stake in RaiWay.
State broadcaster Rai, which holds 65.07% in the towerco, has also opposed the offer, which it called “inadmissible”.
EI Towers got the nod from shareholders earlier in March for a €374m (US$405m) capital hike to back the deal. It plans to issue up to 8.16 million ordinary shares by the end of 2015.
It has also secured a loan for up to a €1.1bn (US$1.18bn) to finance the cash portion of the deal with a consortium including JP Morgan, Unicredit and BNP Paribas.
