Swisscom AG (SWX:SCMN) is weighing an offer for Vodafone Group Public Limited Company (LSE:VOD)?s Italian business early next year, potentially countering a rival bid from Iliad SA for the unit, people familiar with the matter said. The possible deal would combine Vodafone?s mobile service with Swisscom?s Fastweb SpA fiber broadband carrier in the country, the people said, asking not to be identified because the deliberations are private. Swisscom and Vodafone are in talks to discuss the terms and a formal bid could be announced as soon as next month, they said.

No final decisions have been made and Swisscom may decide against an offer.