ROME, Feb. 28 (Xinhua) -- Telecommunications company Swisscom announced Wednesday that it had reached a preliminary agreement to acquire Vodafone's Italian unit for 8 billion euros (8.7 billion U.S. dollars).
Vodafone-Italia confirmed the deal via social media.
The deal, which is still subject to regulatory approval, would see Swisscom's subsidiary Fastweb -- a leading Italian Internet service provider -- combine with Vodafone-Italia to create a telecommunications powerhouse.
A month ago, Vodafone-Italia turned down an offer from France's Iliad to merge the two companies.
Shares in Swisscom fell after the news was announced, slipping 1.4 percent on the Zurich Stock Exchange. Shares in Vodafone Plc., the London-based firm that controls Vodafone Italia, gained 3.8 percent after rallying late in the trading session.
