Euskaltel, S.A. (BME:EKT) said its board had agreed to collaborate with MásMóvil Ibercom, S.A. after its larger rival launched a takeover bid. Euskaltel said it had accepted on Sunday to provide “reasonably needed support” to MasMovil to carry out the takeover and prepare documents to secure approval from regulators. Euskaltel's board members would set out their position regarding the bid, the company said in a statement on Monday.

MasMovil, which is own by three buyout funds led by KKR announced on Sunday a friendly takeover bid for rival Euskaltel, which is worth nearly €2 billion ($2.4 billion). MasMovil said it had already secured the agreement of shareholders, who hold 52.32% of Euskaltel's capital. It is offering €11.17 per share in cash, which is a 16.48% premium compared with Friday's March 26, 2021 closing price.

The move would shake up the highly competitive Spanish market by reducing the number of players. MasMovil said its offer was conditional on achieving the acceptance of at least 75% plus one share of the capital and obtaining all appropriate competition and regulatory authorisations.