Telecom operator Swisscom is likely to sell its Italian broadband firm Fastweb for $6.3 billion. Vodafone is one of the suitors.
Earlier, Swisscom denied any such moves.
The Swiss majority state-owned firm is working with UBS, Vodafone’s long-term adviser, to facilitate a deal, Reuters reported.
Swisscom acquired Milan-based Fastweb at an enterprise value of 4.2 billion euros in 2007.
Fastweb network aims to reach 7.5 million households by the end of 2016, or 27 percent of Italy’s population. Fastweb has EBITDA of 620 million Swiss francs (510 million euros) in 2013.
The Reuters report said buying Fastweb would allow Vodafone, Italy’s No. 2 mobile operator, to avoid a time-consuming landline network roll-out and better compete against Telecom Italia.
After making $130 billion by exiting from Verizon Wireless, Vodafone has been on an acquisition spree.
Vodafone’s strategy in Europe is to diversify from its slow-growing mobile operations and expand in data and content services.
Vodafone has already acquired Kabel Deutschland in Germany and ONO in Spain to offer bundle services to its customers.
The report said Telecom Italia is exploring ways to boost its fiber optic business by acquiring a 53.8 percent stake in network specialist Metroweb Italia from Italy’s largest infrastructure fund F2i. Fastweb owns 10.6 percent of Metroweb.
Ambika M
editor@telecomlead.com
