Euskaltel's board recommends accepting Masmovil's takeover bid

A balloon with the logo of Masmovil is seen during its bourse debut in Madrid, Spain, July 14, 2017. REUTERS/Juan Medina/File Photo

MADRID, July 12 (Reuters) - The board of Spanish telecom operator Euskaltel (EKTL.MC) 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. read more

Euskaltel's major shareholders Zegona, Kutxabank and Corporacion Financiera Alba (ALB.MC) - 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)

Reporting by Emma Pinedo; Editing by Nathan Allen

Our Standards: The Thomson Reuters Trust Principles.

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