Vodafone to buy Tele2 Italy and Spain

A source familiar with the matter told Reuters on Tuesday that Vodafone was the frontrunner to buy Tele2 Italy after Italian rivals Tiscali and Fastweb had withdrawn from the race, though at that time Italian telecoms group Wind was also said to be still interested.

Tele2 has already sold subsidiaries worth at least 6.9 billion Swedish crowns this year in a move to overhaul its portfolio and refocus on profitable broadband and mobile assets.

"As an important step in our realignment strategy, Tele2 has decided to take advantage of the consolidation processes currently taking place in the Italian and Spanish telecommunications markets in order to realise value," Tele2 President and CEO Lars Johan Jarnheimer said in a statement.

($1=.7088 Euro)

($1=6.505 Swedish Crown)