Euskaltel's board recommends accepting Masmovil's takeover bid

MADRID - The board of Spanish telecom operator Euskaltel recommended its shareholders accept Masmovil's 1.99 billion euro ($1.18 billion) takeover bid on Monday, saying it was fair from a financial point of view.

The friendly merger would reinforce Masmovil's position as the fourth-largest operator in Spain's crowded telecoms sector.

The non-binding recommendation comes after the Spanish government approved the deal last month.

Euskaltel's major shareholders Zegona, Kutxabank and Corporacion Financiera Alba - which together own 52.32% of Euskaltel - agreed in March to accept the offer of 11.17 euros per share in cash, a 16.48% premium at the time.

($1 = 0.8422 euros)