Latest News

Vodafone suffers hump day blues after rejecting Iliad offer


Vodafone suffers hump day blues after rejecting Iliad offer By Proactive Investors

Breaking News


Stock Markets

Published Jan 31, 2024 11:47

© Reuters. Vodafone suffers hump day blues after rejecting Iliad offer

Proactive Investors – Vodafone Group PLC (LON:VOD) had a rough hump day this Wednesday, with shares in the British telecoms multinational on a downward trajectory and Deutsche Bank (ETR:DBKGn) slashing its price target.

The FTSE 100 constituent topped the fallers table after Iliad Group disclosed that Vodafone had rejected another proposal to merge the groups’ Italian businesses.

Iliad said the merger would have created the most innovative telecoms challenger for Italy, but Vodafone had failed to accept the offer.

“The Iliad Group is confident that the offer presented was the best possible business combination to benefit a struggling Italian market and telecommunications industry,” read the press release.

Under the rejected offer, Vodafone would have received €6.6 billion ($7.1 billion) in cash and a €2 billion shareholder loan, while Iliad would get €400 million in cash and a €2 billion loan.

Iliad also offered to give up its options that would have led to an increased stake in Vodafone down the line.

Paris-based Iliad initially presented Vodafone with a €6.5 billion cash offer in December 2023, which valued Vodafone’s Italian arm at €10.45 billion.

“Vodafone is supportive of in-market consolidation in countries where it is not achieving appropriate returns on invested capital and confirms it is exploring options with several parties to achieve this in Italy, including through a merger or a disposal,” Iliad said at the time.

Switzerland-based telecoms group Swisscom is also reportedly eyeing up a move for Vodafone’s Italian business.

Vodafone shares were put further under the cosh after Deutsche Bank lowered its price target to 145p from 165p, although it has kept a buy rating on the stock.

“Even in the context of a ‘tough gig’ sector, Vodafone seems to consistently snag competitively, technologically or geopolitically, somewhere in its broad footprint,” said Deutsche Bank’s head of European TMT research Robert Grindle.

Vodafone shares were nearly 3% lower at 66.78p as of 11.15am.

Read more on Proactive Investors UK


Vodafone suffers hump day blues after rejecting Iliad offer

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Oil prices edge lower on demand worries ahead of data on U.S. crude inventories

Previous article

This money manager nailed two big stock turning points. Here’s are his next ‘rocket ship’ ideas.

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News