Swisscom mulls Fastweb sale; Vodafone in the frame - report

Swisscom mulls Fastweb sale; Vodafone in the frame – report

08 OCT 2014

Swisscom is considering a sale of Fastweb, its Italian broadband subsidiary, and Vodafone Group remains an interested buyer, according to Reuters.

Mario Rossi, Swisscom’s CFO, earlier in the year denied any intention of selling Fastweb to Vodafone, despite the latter’s search for fixed-network assets in leading European markets.

Reuters indicates, however, there’s been a change of heart in the Swisscom boardroom. The Swiss operator, it says, is now working with UBS (a long-term adviser to Vodafone) on how to offload Fastweb.

Vodafone is not currently in talks with Swisscom, but sources say the UK-headquartered group is still interested in acquiring the broadband firm and would be open to discussions.

Italy (and the UK) are holes in Vodafone’s footprint as it pursues a quad-play strategy in its main European markets. It recently agreed to acquire Spanish cable operator Ono for €7.2 billion following last year’s buy of Kabel Deutschland in Germany for €7.7 billion.

Reuters cites banking sources which place a value on Fastweb in the €4 billion-€5 billion range. The calculation is based on Swisscom’s 2013 EBITDA of €510 million and sector multiples of between 8 and 10.


Ken Wieland

Ken has been part of the MWC Mobile World Daily editorial team for the last three years, and is now contributing regularly to Mobile World Live. He has been a telecoms journalist for over 15 years, which includes eight...More

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