Benzinga | Jan 24, 2022 07:09AM EST

Vodafone, Iliad Explore Merger Of Italian Operations: Report

* Telecom firm Vodafone Group PLC (NASDAQ:VOD) looks to strike a deal in Italy to combine its business with peer Iliad SA (OTC:ILIAY), Reuters reports.

* The report adds that Iliad, which will make its wireline broadband debut in Italy on January 25, is working with investment bank Lazard Ltd (NYSE:LAZ) on its strategic plans in Italy.

* The deal could create a telecoms powerhouse with a mobile market penetration of ~36% and combined revenues of ~(euro)6 billion ($6.80 billion).

* Vodafone has annual revenue of ~(euro)5 billion in Italy and a 28.5% market penetration among mobile phone customers.

* Iliad reported (euro)674 million in annual revenue in 2020 and a mobile market share of about 7.7%.

* Price Action: VOD shares traded higher by 6.63% at $16.88 in the premarket session on the last check Monday.