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Provided Content: Content provided by Associated Press. The Globe and Mail was not involved, and material was not reviewed prior to publication.

Swisscom confirms talks to buy Vodafone's Italian unit for 8B euros

Associated Press - Wed Feb 28, 3:12AM CST

GENEVA (AP) — Telecoms operator Swisscom confirmed Wednesday it's in talks with Vodafone Group toward a possible purchase of its Italian subsidiary for 8 billion euros ($8.65 billion).

The Swiss company, which is majority owned by the Swiss government, said in a statement it's in “advanced exclusive negotiations” to buy all of Vodafone Italia and merge it with Swisscom's Italian subsidiary, Fastweb.

Swisscom says it expects the purchase, if concluded, would add value and cash flow to the Swiss company and help improve its dividend policy.

The Swiss telecoms operator says the deal would bring lower costs and pave the way for synergies, and comply with aims of the Swiss executive branch, the Federal Council.