Speculation over the future of Italian triple-play operator Fastweb has reignited following a report which suggests that its parent, Swisscom, has hired a bank to explore a sale of the unit.
The Swiss incumbent is working with UBS, previously an adviser…
Speculation over the future of Italian triple-play operator Fastweb has reignited following a report which suggests that its parent, Swisscom, has hired a bank to explore a sale of the unit.
The Swiss incumbent is working with UBS, previously an adviser to long-term Fastweb suitor Vodafone, to see if a deal can be done with the British telco, sources familiar with the situation told Reuters.
Vodafone is not currently in talks with Swisscom but retains an interest in acquiring the Italian telco, according to the report.
Both Swisscom and Vodafone both declined to comment on the report.
Italy is Vodafone’s largest European market where it is yet to offer fixed-line services and has therefore been linked to a Fastweb acquisition since it decided to focus on adding fixed-line assets to its mobile operations.
Swisscom, which is majority-owned by the Swiss Confederation, acquired Fastweb in 2007 for an enterprise value in the region of €4.2bn. The business could now be worth as much as €5bn, according to the report.
Fastweb has the second-largest network in Italy after Telecom Italia. The Italian incumbent has itself been linked to an acquisition of smaller local B2B fibre operator Metroweb, in which Fastweb has a 10% stake. However, the asset is not of interest to Vodafone as it would not amount to a game-changing acquisition, the report said citing one of the people.
Vodafone has acquired a number of fixed-line operators over recent years in the larger European markets it operates in: in 2012 it bought British enterprise player Cable & Wireless Worldwide for US$1.67bn; in 2013 it sealed its US$10.5bn takeover of Kabel Deutschland; and this year it bought Spanish cableco Ono for US$10bn.
Vodafone has also hinted at a “transformational” M&A deal in the longer term. Last month, its CEO Vittorio Colao was cited as saying his company could explore a purchase of pan-European cable giant Liberty Global for the right price.
