The Italian government has blocked a €1.2bn (US$1.4bn) attempt by local towerco EI Towers to take over state-controlled rival Rai Way.
EI Towers’ offer was conditional upon it buying at least 66.67% of Rai Way, however, the economic development…
The Italian government has blocked a €1.2bn (US$1.4bn) attempt by local towerco EI Towers to take over state-controlled rival Rai Way.
EI Towers’ offer was conditional upon it buying at least 66.67% of Rai Way, however, the economic development ministry said the government must own no less than 51% of the group because of the “strategic importance of network infrastructure”.
The cash and stock deal was launched on Tuesday – just months after Rai Way was listed in November – and would have created a major national TV and radio infrastructure player.
EI Towers was to pay €4.5 for each Rai Way share, corresponding to a 22% premium on the stock’s price on Monday.
The offer consisted of a cash component of €3.13 per share, as well as 0.03 newly-issued EI Towers ordinary shares.
EI Towers, which is 40% owned by former prime minister Silvio Berlusconi’s Elettronica Industriale, said it would have funded the acquisition with a loan granted by an undisclosed “primary international investment bank”.
Its shareholders were due to meet to approve the offer on 27 March.
According to EI Towers, the move would have placed Italy on a par with other European countries where TV and radio network infrastructure is managed by a single player.
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.
In 2001, the Italian government of the time shot down an attempt by US telco Crown Castle to buy 49% of the group for US$380m.