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Bouygues Spectrum Buy to Benefit Iliad’s Mobile Business: UBS 2014-03-10 07:53:58.110 GMT
By Sam Chambers March 10 (Bloomberg) -- If Iliad’s proposed purchase of Bouygues’ spectrum and mobile network completed by end 2014, Iliad’s net debt/Ebitda would fall <1 by 2017, UBS says. * Iliad would benefit from higher opFCF, as a result of not paying roaming fees to Orange, UBS says * Purchase would allow Iliad to bypass execution risk from roll out of a mobile network and close the 4G gap vs rivals * Orange’s est. 2015 opFCF may fall 10% in 2015, 6% in 2016, 3% in 2017 * Disposal of Bouygues’ mobile network makes its ambitious est. of EU1.4b synergies from SFR deal even less achievable * Rates Iliad buy, Vivendi neutral; has sell ratings on Orange, Bouygues * NOTE: Iliad-Bouygues talks make regulator’s task simpler, Echos reports * NOTE: Iliad reported 2013 sales, Ebitda above ests. today
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To contact the reporter on this story: Sam Chambers in London at +44-20-7673-2021 or schambers7@bloomberg.net To contact the editors responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net Andrew Rummer