Vodafone and Iliad are apparently discussing a deal that would combine their respective Italian businesses in a bid to end cut-throat competition in the euro zone’s third-biggest economy, according to Reuters.
Discussions between the two companies are ongoing and both parties are actively studying ways to clinch a tie-up of their respective businesses in Italy, the sources say. Iliad, which is launching cable broadband in Italy on January the 25th, is working with investment bank Lazard on its strategic plans in Italy, the sources say.
If successful, a deal would create a telecoms powerhouse with a mobile market penetration of about 36% and combined revenues of nearly 6 billion euros ($6.80 billion).
Iliad, led by billionaire founder Xavier Niel, has been reviewing options to further expand in Italy in recent months as it seeks to take advantage of deal fever in Italy’s telecoms industry to accelerate consolidation and cease a price war that has been slashing its margins, the sources said.
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