Swiss telecoms group Swisscom has proposed a €3.7 billion ($4.9 billion) friendly takeover of Italian broadband operator Fastweb.
State-controlled Swisscom said today it would offer €47 per share for Fastweb, a 19 per cent premium to its price on Friday, before takeover rumours pushed it sharply higher.
But Fastweb shares leaped over the offer price to a high of €49.06 on speculation of a counterbid. Swisscom shares fell sharply as some analysts called the offer expensive.
Fastweb's board welcomed the bid and urged Swisscom to make the offer as soon as possible. The company's chairman, Silvio Scaglia, said he was ready to hand over his 18.75 per cent stake unless a better offer emerged.
Sources close to Vodafone and Sky Italia said they were unlikely to launch counterbids for Italy's number-two fixed-line telecoms operator.
The bid is the first major foray abroad for Swisscom since the government imposed restrictions on foreign purchases in 2005, blocking its play for Eircom.
A Fastweb takeover would help strengthen the former monopoly's profile with the latest optic-fibre, voice and broadband technologies, and add rising income from neighbouring Italy to its stagnant domestic revenues.