Iliad submits proposal for Vodafone merger in Italy

Iliad Group, owned by French tycoon Xavier Niel has submitted a proposal to Vodafone to merge the two telcos in Italy. In its offer, Iliad valued Vodafone Italia at €10.45 billion and is to receive €500 million in cash and 50 percent of the new business as part of the proposal with Vodafone receiving the same.

The offer would allow Iliad the option to purchase an additional 10 percent of the merger company's shares every year, paving the way towards full control.

Acknowledging the merger, Vodafone said, "Consistent with its previous statements, Vodafone is supportive of in-market consolidation in countries where it is not achieving appropriate returns on invested capital and confirms it is exploring options with several parties to achieve this in Italy, including through a merger or a disposal. There can be no certainty that any transaction will ultimately be agreed. If required, a further announcement will be made when appropriate."