French Telco Deals Not Close, Macron May Help in Italy: Analysts
Centrist Emmanuel Macron winning the French presidential election would help a possible deal between Orange and Telecom Italia by “rounding out the angles,” Jean-Michel Salvador, an analyst at AlphaValue, says in an emailed response.
- Notes that negotiations between France and Italy would be “tough” if Orange decided to pursue such a deal
- Carrier consolidation within France is no longer likely in the medium term, given the French regulator’s recent signals against it, Stephane Beyazian, an analyst at Raymond James, says in emailed response
- If new price promotions were to impact Bouygues Telecom and stop its plan of rebuilding free cash flow, this might force chairman Martin Bouygues to reconsider his stance of not selling
- Orange buying Bouygues with stock to keep the latter’s telco exposure remains the most likely option, yet all scenarios are possible: Beyazian
- Macron winning the first round and his chances to win office in two weeks are “good news” for Orange, according to Saeed Baradar, a telecoms sales specialist at Louis Capital Markets
- Notes recent stock underperformance in contrast to “best in class” operational performance
- Orange gains as much as 5.6%, Bouygues rises 4.8%, Telecom Italia up 3.5%, SFR climbs 3.4%, Iliad gains 2.8%