(Telecompaper) The Italian government has rejected a bid by Mediaset-controlled EI Towers to acquire rival Italian tower operator RaiWay for around EUR 1.23 billion in cash and stock. In a statement, the economic development ministry said that in view of the strategic importance of the assets, it wouldn't be accepting the offer. Under a September decree, at least 51 percent of RaiWay has to remain under the control of state broadcaster Rai. The government's move comes a day after EI Towers said it was offering EUR 3.13 in cash plus 0.03 new EI Towers common shares for each RaiWay share, valuing the Rome-based company's stock at EUR 4.50 each. The aim was to "create a single operator of broadcasting towers in Italy," said Mediaset. Rai Way was listed on the Milan stock exchange in November in an IPO that valued the company at around EUR 800 million and left Rai with a controlling stake of 65 percent. However, the news that Mediaset was seeking to acquire one of Rai's last strategic assets was described as unacceptable by Italian opposition parties and trade unions. EI Towers had earlier announced that its shareholders would be meeting on 27 March to approve a capital increase for the transaction.