Weather Investments consortium gains exclusivity for Wind

Wind has entered into exclusive negotiations with the Weather Investments consortium, led by the Egyptian businessman Naguib Sawiris. Both parties have until 30 May to negotiate an agreement for the estimated E12.2bn buyout of the Italian telephone company, although the transaction is still subject to antitrust approval and could take months to complete. Weather Investments previously offered to buy approximately 63% of Wind for around E10.2bn (including the E7.4bn of debt already in the company) and then later acquire the remaining equity. This offer values Wind at around E12.2bn. According to the Italian press, negotiations during exclusivity will largely focus on the structure of the deal and the various acquisition options. One possibility is that Enel, the utilities company that owns Wind, will sell around 70% of Wind now and sell the remainder in 2006. Another report suggests that Enel wishes to retain a 30% stake in Wind and will therefore sell 62.75% now and a further 7% using a put-call mechanism within six months of deal closure. It is also possible that Enel may acquire a 30% stake in the newco formed for the purchase of Wind. Apax Partners is believed to form part of Weather Investments, although this has not been confirmed.

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• Southern Europe