Iliad Buying Bouygues Telecom Most Likely French Tieup: SocGen
2014-06-26 06:06:11.224 GMT
By Morwenna Coniam
June 26 (Bloomberg) -- Merger of Bouygues Telecom and Iliad
most realistic scenario for consolidation in French telecom
market, SocGen says in note.
* Regulatory hurdles should be easily surmountable, merging
fixed and mobile networks should deliver tangible synergies
* Estimates Bouygues Telecom’s value in EU5.1b to EU7.4b range
* As Iliad would likely struggle to fund a deal in debt only,
est. EU1.1b capital increase would be needed
* Sees little or no industrial rationale in alternative
scenario of Bouygues Telecom being acquired by Orange; sees
competition issues
* Consolidation scenario fully priced in for Bouygues, cuts
2014/15 EPS ests., raises PT to EU29 vs EU21: SocGen
* Rates Bouygues sell, Iliad buy
* NOTE June 10: Iliad’s Bid for Bouygues Telecom Said to
Stumble Over Price Gap
* NOTE: Telecoms accounted for 13.9% of Bouygues rev. in 2013:
Bloomberg data
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To contact the reporter on this story:
Morwenna Coniam in Hong Kong at +852-2977-6612 or
mconiam@bloomberg.net
To contact the editors responsible for this story:
Clyde Eltzroth at +1-212-617-1879 or
celtzroth1@bloomberg.net;
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Roger Neill, Morwenna Coniam
2014-06-26 06:06:11.224 GMT
By Morwenna Coniam
June 26 (Bloomberg) -- Merger of Bouygues Telecom and Iliad
most realistic scenario for consolidation in French telecom
market, SocGen says in note.
* Regulatory hurdles should be easily surmountable, merging
fixed and mobile networks should deliver tangible synergies
* Estimates Bouygues Telecom’s value in EU5.1b to EU7.4b range
* As Iliad would likely struggle to fund a deal in debt only,
est. EU1.1b capital increase would be needed
* Sees little or no industrial rationale in alternative
scenario of Bouygues Telecom being acquired by Orange; sees
competition issues
* Consolidation scenario fully priced in for Bouygues, cuts
2014/15 EPS ests., raises PT to EU29 vs EU21: SocGen
* Rates Bouygues sell, Iliad buy
* NOTE June 10: Iliad’s Bid for Bouygues Telecom Said to
Stumble Over Price Gap
* NOTE: Telecoms accounted for 13.9% of Bouygues rev. in 2013:
Bloomberg data
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Morwenna Coniam in Hong Kong at +852-2977-6612 or
mconiam@bloomberg.net
To contact the editors responsible for this story:
Clyde Eltzroth at +1-212-617-1879 or
celtzroth1@bloomberg.net;
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Roger Neill, Morwenna Coniam