Following the news that Vodafone has rejected outright an offer for 100% of Vodafone Italy made earlier by Iliad S.A. and Apax Partners LLP;

Emma Mohr-McClune, Service Director Technology at GlobalData, a leading data and analytics company, comments:

“We can view this bid as the opening whistle on what is clearly to become a lively and potentially unconventional bidding season for Vodafone’s European assets in the UK, Italy, Portugal and Spain.

“It was clear that the confirmed offer from Iliad for 100% of Vodafone Italy would not be viewed favorably. I doubt that Vodafone is open to shedding 100% of any of its European businesses, in fact. It will be looking for a more balanced joint venture (JV) or merger model—such as the one the company currently operates in the Netherlands—to retain a stake in these markets, while also maximizing the savings and operational efficiencies planned to emerge from its ongoing, company-wide structural separation and digital platform streamlining activities.

“What’s more, in looking for the right merger or JV partner, Vodafone will clearly favor entities that will be able to help it consolidate its strength in convergence and digital services in the B2B channel, and particularly the difficult-to-target SME sector. Iliad Italy’s qualifications on all counts are poor, and, in this respect, its opening bid for 100% of Vodafone Italy was never likely to be received warmly.”