Vantage Towers, the mobile towers business joint owned by Vodafone Group PLC (LSE:VOD), could hold a decisive hand in the potential takeover of Italian peer INWIT.
French investment firm Ardian is mulling a bid for €11bn INWIT, Reuters reported on Thursday.
Vantage is the largest shareholder in INWIT, with a 33.2% stake, with Ardian next with roughly 30%.
The French firm is being advised by JPMorgan Chase on a potential offer, the report said, but work is still at an early stage.
Vantage Towers may need persuading, in the form of a sizeable premium, in order to accept the deal, having understood to view itself as a “long-term holder” of INWIT, one of the sources said.
Vantage is also the target of a take-private offer from a joint venture formed by Vodafone and a consortium including KKR and Global Infrastructure Partners.
In November, Vodafone agreed to sell a major stake in Vantage Towers to the private equity firms, netting it a minimum of €3.2bn.
The consortium will buy up to half of Vodafone's 81.7% stake in Vantage, with the three-way joint venture offering to buy out the minority shareholders at a price of €32 per share.