Vodafone has turned down a proposal from Iliad to merge their Italian operations. Iliad, a French telecoms company, had made a revised offer, but Vodafone, a UK-based company, did not accept it. The new proposal removed certain options for Iliad and increased the cash proceeds for Vodafone. Despite this, both companies would still receive a shareholder loan and share the new business equally. Iliad values Vodafone Italia at €10.45bn.

 

Iliad, with operations in France, Italy, and Poland, aims to expand its business, especially in Italy. Vodafone's CEO, Margherita Della Valle, stated that the company is no longer in talks with Iliad, but discussions with other parties continue. Vodafone shares declined, and the company has been exploring options in Italy, including a potential merger or disposal.

 

Iliad's previous bid in 2022 was also rejected. Vodafone has informally discussed a merger or partial asset disposal with Fastweb, owned by Swisscom. Such a merger could create a strong competitor in the business services segment. Iliad entered Italy in 2018, causing a price war among mobile carriers. A merger with Vodafone would have made the combined group Italy's largest.

 

Telecom Italia (TIM), the former state monopoly, has announced plans to split its business and sell its network to KKR, potentially triggering further consolidation in Italy's telecoms market. Vodafone's CEO has been focusing on simplifying the company and pursuing deals in European markets.

 

Della Valle has already announced the sale of Vodafone's Spanish business and a proposed domestic merger with Three UK. The UK government has raised concerns about a stake in Vodafone held by its largest shareholder, Emirates Telecommunications.