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Swisscom Enter Binding Agreement To Acquire Vodafone Italia

COMMUNICATIONS


  • Swisscom has entered a binding agreement to buy Vodafone Italia for EUR 8bn
  • Debt and cash free basis while consideration is to be 100% cash and fully debt-financed
  • Expected EUR ~600mn annual synergies
  • Positive for VOD spreads though expected given prior announcement; probably not enough to promote a rating change for either party but the market sees the transaction as broadly positive

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