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Italy state broadcaster RAI moves towards tower tie-up, sources state

Italian state broadcaster RAI is taking early actions towards a potential merger between its Milanlisted tower unit RaiWay and competing EI Towers, two sources near to the matter informed Reuters.

A tie-up between RaiWay and EI Towers, which is owned by Italian infrastructure fund F2i and Italy's top commercial broadcaster MFE has actually been mooted for several years.

It would create a nationwide broadcasting tower champion worth nearly 4 billion euros ($ 4.21 billion), when including financial obligation.

RAI's board of directors may go over a preliminary non-binding arrangement to initiate talks with EI Towers investors on an offer at a meeting set up for Dec. 19, among the sources said.

Earlier this year, Rome authorized a decree stating that any cut in RAI's stake in its tower system need to be pursued through offers that guarantee a combination of entities operating in the very same sector.

A memorandum of understanding with F2i and MFE would permit RAI to start thinking about tactical options for its tower system, including a prospective stake sale, according to the sources.

Before the decree was authorized in May, RAI was considering selling up to a 15% stake in RaiWay to money its service plan and its financing requires.

The sources said that the primary shareholders of RaiWay and EI Towers had not yet concurred the structure of a tie-up in between the two relaying tower companies.

The decree confirmed an existing obligation for RAI, which presently owns 65% of RaiWay, to keep at least a 30% stake in its tower service.

All the parties included declined to comment or were not right away readily available.

(source: Reuters)