Vodafone closes in on Metroweb deal

Vodafone has reportedly reached a preliminary agreement to buy a stake in Italian fibre-optic operator Metroweb Italia SpA from investor F2i Sgr SpA.The letter of intent to negotiate a deal had not been made public because it in non0binding and so could fall through. The letter does not contain financial details, although a source familiar with the deal said Vodafone could fund a capital increase of up to €55m.Italy has historically performed poorly for Vodafone, with sales falling 24% between 2012 and the fiscal year ending March 2014.However, Metroweb operates in the Milan area and allow Vodafone to improve broadband services and strengthen its position with competitors including Telecom Italia SpA, which has also sought a stake in Metroweb.One of Vodafone's conditions on the deal is that no single provider gains majority control of Metroweb, whose shareholders include state-backed Fondo Strategico Italiano.