Italian telecom operator Fastweb, a subsidiary of Swisscom AG, is reportedly exploring a potential acquisition of Vodafone Group PLC's (LSE:VOD) Italian operations.
The story was reported by Bloomberg, citing the classic “people with knowledge of the matter”.
This development follows Vodafone's ongoing discussions with Iliad SA, led by French billionaire Xavier Niel, regarding a merger of their Italian businesses.
However, there is no certainty that Vodafone will proceed with any transaction, having previously rejected a €11.25 billion bid from an Iliad-backed consortium for its Italian unit, considering it not in the best interest of shareholders.
Italy, known for its highly competitive telecom market, is undergoing significant changes with the sale of Telecom Italia SpA's network, possibly triggering further industry consolidation.
The recent sale of Vodafone's Spanish business to Zegona for €5 billion further fuels speculations about the Italian arm's future.
Chief executive Margherita Della Valle told investors earlier this month she was considering various options for the Italian arm amidst disappointing company results.
The company's mounting debt and poor performance metrics have raised concerns among investors.
Notably, Italy was once one of Vodafone's best overseas markets until the entry of Iliad, which disrupted the market dynamics. The current valuation of Vodafone's Italian business stands at around €9.3 billion, according to Barclays.