VOD - Vodafone: Analyzing Iliad's 11 Billion Euros Bid For The Italian Business

• Private French telecom group Iliad wants to purchase Vodafone Italy for 11 billion euros.
• A deal with Vodafone would be timely for Iliad in order to rapidly expand both mobile telephony and fixed network services in Italy.
• However, the bid was rejected by the U.K.-based company, while it has not closed the door to consolidation efforts in Italy.
• This thesis makes the case for an eventual sweetening by analyzing the Italian business in light of competition and regulatory approval.
• Vodafone is a buy due to its lower valuation, sustained cost reduction resulting in bottom-line improvement, and ability to monetize tower infrastructure assets through Vantage Towers.

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