Iliad's Italian Merger Proposal Boosts Vodafone Shares
French telecommunications company Iliad has proposed a merger with Vodafone's Italian unit, aiming to combine its growing consumer base with Vodafone's strength in the business sector. Vodafone is currently reviewing options for its Italian operations and is also exploring a potential deal with Swisscom's Fastweb unit. The Italian market is facing shrinking revenue and margins, prompting operators to consider consolidation. Under Iliad's proposal, Vodafone would receive €6.5 billion in cash and a 50% stake, while Iliad would receive €500 million and an identical shareholder loan. The potential synergies offered by Iliad are seen as higher, but a tie-up with Fastweb would face fewer regulatory hurdles.