Italian market regulator Consob has suspended its 15-day review of EI Towers’ €1.2bn (US$1.4bn) bid for state-controlled rival RaiWay, requesting additional information on the proposed takeover.
Earlier today, EI Towers shareholders approved a…
Italian market regulator Consob has suspended its 15-day review of EI Towers’ €1.2bn (US$1.4bn) bid for state-controlled rival RaiWay, requesting additional information on the proposed takeover.
Earlier today, EI Towers shareholders approved a €374m capital hike to fund the deal. The company plans to issue up to 8.16m ordinary shares by 31 December 2015.
The tower operator has secured a loan for up to a €1.1bn to finance the cash portion of the deal from a consortium of banks including JP Morgan, Unicredit and BNP Paribas.
Local financial daily Milano Finanza quoted Arturo Albano, a representative of PE fund Amber Capital, one of EI Towers minority shareholders, as saying that he would agree to reviewing the terms of the offer, increasing Rai Way’s stake in the merged entity to gain approval for the deal.
Last month, the government vetoed EI Towers’ cash-and-stock offer for a minimum 66.67% stake in RaiWay, saying it needs to be at least 51% state controlled because of the “strategic importance of network infrastructure”.
EI Towers, which has not yet held formal discussions over the offer with RaiWay’s owner Rai, said it could consider a number of alternative options to achieve its strategic objectives, adding that it would have to discuss any amendments to its original offer directly with the target and its parent company.
Italy’s antitrust watchdog AGCM is also investigating EI Towers’ bid in order to assess 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.
