An eventual acquisition is also considered by Vodafone Group Plc. who has prior approached Kabel Deutschland AG about a takeover proposal. Vodafone plans to acquire Fastweb SpA in Italy for the expansion of its fixed line and internet assets. This was according to people familiar with the matter.
According to sources who asked not to be named as discussions are made private, the UK firm Fastweb is on the company's list of potential targets. The move is initiated by Vodafone as it seeks to add faster growing investments in Europe. Currently, Vodafone is focused in the completion of its takeover deal with Kabel Deutschland. The said deal was priced at US$9 billion according to same sources.
As the world's second biggest wireless company, Vodafone is seeking possible deals as it explores how to use proceeds from the eventual acquisition of its 45% stake US telecom firm, Verizon Wireless. The transaction is said to reap more than US$100 billion.
Fastweb is third biggest retail broadband operator in Italy. The company has 1.9 million clients and a book value of Eur2.9 billion according to the company.
Vodafone made two informal approaches for Fastweb this year and last 2011. Both proposals were rejected according to two sources.
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