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Xavier Niel’s telecoms company Iliad has proposed merging its Italian operations with Vodafone’s Italian arm, in an effort to gain scale as it competes with incumbent operator Telecom Italia.
Under the strategize Vodafone would acquire €6.5bn in cash and a 50 per cent stake in the new business. Iliad would acquire €500mn in cash and 50 per cent of the new business.
Iliad said the new company “would become the leading actor for investment in cutting-edge technology” in Italy.
Vodafone declined to comment. The company’s shares rose 4.6 per cent in early trading in London.
In February last year, Vodafone rejected an €11bn offer from Iliad and private equity group Apax for its Italian business.
