MILAN (Reuters) - Italian state broadcaster RAI is taking early steps towards a potential merger between its Milan-listed tower unit RaiWay and rival EI Towers, two sources close to the matter told
RAI Considers Merging RaiWay with EI Towers
MILAN (Reuters) - Italian state broadcaster RAI is taking early steps towards a potential merger between its Milan-listed tower unit RaiWay and rival EI Towers, two sources close to the matter told Reuters.
A tie-up between RaiWay and EI Towers, which is owned by Italian infrastructure fund F2i and Italy's top commercial broadcaster MFE has been mooted for years.
It would create a national broadcasting tower champion worth nearly 4 billion euros ($4.21 billion), when including debt.
RAI's board of directors may discuss a preliminary non-binding agreement to initiate talks with EI Towers shareholders on a deal at a meeting scheduled for Dec.19, one of the sources said.
Earlier this year, Rome approved a decree stating that any cut in RAI's stake in its tower unit must be pursued through "deals that ensure a combination of entities operating in the same sector."
A memorandum of understanding with F2i and MFE would allow RAI to start considering strategic options for its tower unit, including a potential stake sale, according to the sources.
Before the decree was approved in May, RAI was considering selling up to a 15% stake in RaiWay to fund its business plan and its financing needs.
The sources said that the main shareholders of RaiWay and EI Towers had not yet agreed the structure of a tie-up between the two broadcasting tower companies.
The decree confirmed an existing obligation for RAI, which currently owns 65% of RaiWay, to maintain at least a 30% stake in its tower business.
All the parties involved declined to comment or were not immediately available.
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(Reporting by Giuseppe Fonte and Elvira Pollina, editing by Giselda Vagnoni)
