Vodafone Rejects Iliad's $12.85 Billion Approach for Italian Business
February 10 2022 - 12:52PM
Dow Jones News
By Kyle Morris and Mauro Orru
Vodafone Group PLC has rejected an offer from French
telecommunications group Iliad aimed at acquiring Vodafone's
Italian business for 11.25 billion euros ($12.85 billion).
The U.K.-based telecommunications company said Thursday that it
had rejected the preliminary, nonbinding indication of interest
from Iliad and Apax Partners LLP since it wasn't in the best
interests of shareholders.
While taking note of Vodafone's rejection of its cash offer,
Iliad said it was in the best interest of Vodafone's shareholders
as it reflected a very high premium for Vodafone Italy and enjoyed
strong financial support from one of the top three European banks
for the full amount, as well as from a financial partner.
The scuppered deal marks Iliad's first major lost bet since
billionaire businessman Xavier Niel delisted the company last
year.
Mr. Niel, who founded Iliad in 1999, outlined an offer to take
it private in July, following the precedent set by fellow
entrepreneur Patrick Drahi in early 2021 when he delisted Altice
Europe.
Vodafone said it remains focused on delivering shareholder value
through its organic-growth strategy in the medium-term and
portfolio optimization.
The company continues to pursue value-accretive consolidation to
deliver sustainable market structures in its major European
markets, including Italy, it said.
Write to Kyle Morris at kyle.morris@dowjones.com and Mauro Orru
at mauro.orru@wsj.com; @MauroOrru94
(END) Dow Jones Newswires
February 10, 2022 12:37 ET (17:37 GMT)
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