Vodafone Rejects €10.5bn Merger Proposal from Iliad

Rejection leads to 4% drop in Vodafone's share price; Iliad to pursue standalone strategy in Italy.

Vodafone has rejected a €10.5bn merger proposal from French telecom tycoon Xavier Niel's Iliad Group, which aimed to combine their Italian operations.
The rejection led to a 4% drop in Vodafone's share price, despite Iliad's efforts to sweeten the deal with an extra €100m in cash and a relinquishment of a call option for more control over the joint venture.
Vodafone confirmed it is no longer in talks with Iliad, but continues discussions with other potential partners in Italy, including Fastweb, a mobile and broadband provider owned by Swisscom.
The proposed merger would have created Italy's largest mobile network operator, with Vodafone receiving €6.6bn in cash and a €2bn shareholder loan.
Iliad, which also operates in France and Poland, plans to pursue a stand-alone strategy in Italy and aggressively seek market share gains.