Swiss mobile operator Swisscom has launched an E256m bid to acquire the 18% it does not already own in Italian broadband business Fastweb.
Credit Suisse and Banca IM are advising Swisscom, while Legance Studio Legale Associato is providing legal advice,…
Swiss mobile operator Swisscom has launched an E256m bid to acquire the 18% it does not already own in Italian broadband business Fastweb.
Credit Suisse and Banca IM are advising Swisscom, while Legance Studio Legale Associato is providing legal advice, a Swisscom spokesperson told TelecomFinance.
The E18 per share offer is being made in cash, and will be financed through Swisscom’s own funds or via an existing credit line. The company believes a takeover will help it achieve ‘greater strategic and operational flexibility’, enabling it to take advantage of further growth potential and opportunities in the Italian market for Fastweb.
In statement, Swisscom said its offer, which is awaiting approval from Italian stock exchange regulator Consob, represented a premium of 34.6% to Fastweb’s E13.48 closing share price on Tuesday.
It added that it also intends to retain necessary financial reserves for any further deals.
The spokesperson was unable to offer precise information about these future deals, telling TelecomFinance: “Swisscom has always said that the company is monitoring the Swiss and Italian market carefully. We are ready to take an active role in the Italian market consolidation if possible and reasonable. However, there are no concrete plans for the moment.”
In the first half of 2007, Swisscom increased its stake in Fastweb from a previously acquired 1.7% to 82.4% for a total E4.2bn. Credit Suisse advised Swisscom on the deal, while Fastweb was advised by Deutsche Bank and Unicredito Bank.
Fastweb, which was unavailable for comment, is also currently being probed over an alleged E2bn money laundering scam, involving Telecom Italia’s Sparkle.
Stefano Parisi and Silvio Scaglia, Fastweb’s CEO and founder, respectively, will face trial on November 2 along with five other executives from the two companies.
