– 11 hours ago

http://www.google.com/hostednews/ap/article/ALeqM5hd5NseYJg7TBRQcYUmDKGhzWqimQD9I3MIFG0

MILAN — Swisscom AG announced Wednesday it will buy all outstanding shares in its Italian telecoms unit Fastweb SpA, which has been rocked by a money-laundering probe, for a total of euro256 million ($326 million).

Swisscom said in a statement that the takeover "will give Swisscom greater strategic and operational flexibility."

It will pay euro18 a share, a premium of euro4.63, or 34.6 percent, at Tuesday's close on the Milan Stock Exchange, to buy back the 18 percent stake. Fastweb will exit the Milan Stock Exchange after a decade of being publicly traded.

Shares in Fastweb, Italy's second-largest telecoms company, soared 33.88 percent on opening to euro17.98 on the news.

Analysts at Zuercher Kantonalbank said the purchase premium isn't as high as it may appear at first glance, because Fastweb's share price has suffered in recent months due to the tax affair and the euro is at a historic low against the Swiss franc.

Swisscom's share price nevertheless suffered an 0.5 percent drop to 395.70 francs ($391.90) on the Zurich exchange as investors anticipated lower dividend pay-outs this year.

The company is under investigation in a euro2 billion money laundering probe, in which founder Silvio Scaglia has been implicated. Fastweb denies accusations and says its was a victim of a criminal organization.

The company avoided the risk of being put under administration when Swisscom CEO Carsten Shloter took temporary control of the subsidiary.

It posted a net loss euro34 million in 2009, after setting aside euro70 million for the criminal investigation.

Swisscom took control of Fastweb in May 2007. The main alternative to the former state monopoly Telecom Italia, Fastweb has 1.69 million broadband customers for a market share of around 13 percent.

Fastweb is primarily a broadband provider, but it also offers mobile phone services, with 250,000 customers registered at the end of the first quarter, and Internet protocol television.

Swisscom said the takeover will not affect the company's Italian identity.

"Fastweb is positioned as a strong alternative to the incumbent provider and continues to commit high investments to Italy's network infrastructure," the Swisscom statement said.