By Jonathan Easton
Vodafone Italia has formally rejected Iliad’s US$13 billion takeover approach.
Iliad Group tabled a bid to merge Vodafone Italia with its operation earlier this week at a time when the British telco group is mulling its future options in the UK, Spain, Italy and Portugal.
The preliminary approach from the French group however has been rejected, stating that the deal was not in the best interest of shareholders.
In a statement, Vodafone said: “The board and management of Vodafone remain focused on delivering shareholder value through a combination of its organic growth strategy over the medium-term and ongoing portfolio optimisation.”
Iliad has indicated that it would not come back for a second bite, stating that it would “pursue its stand-alone strategy” and that the offer already reflected a “very high” premium for Vodafone’s Italian unit.
The French Telco currently has 8.5 million mobile subscribers in Italy, and offers a fixed broadband business.
The Italian telecommunications market has become a hotbed of major M&A action, with the country’s largest telco TIM currently assessing a €10.8 billion takeover approach from US investment firm KKR.
