ZURICH (AFP) – British telecoms giant Vodafone said yesterday it has agreed to sell its Italian unit to Swisscom for EUR8 billion (USD8.7 billion) in cash, completing efforts to overhaul the United Kingdom (UK) group’s European operations.
Vodafone, which previously rejected offers from French billionaire Xavier Niel’s Iliad group for the unit, has been on a cost-cutting campaign that has included layoffs and the offloading of divisions abroad.
The UK group said it intends to return EUR4 billion to shareholders following the sales of its Italian and Spanish businesses, totaling EUR12 billion.
Vodafone chief executive Margherita Della Valle said the deal with Swisscom marked the “third and final step in the reshaping of our European operations”.
“Going forward, our businesses will be operating in growing telco markets – where we hold strong positions – enabling us to deliver predictable, stronger growth in Europe,” she said.
