Orange/Bouygues Telecom Deal a Regulatory ’Nightmare,’ RBC Says
2014-05-16 10:43:16.387 GMT
By Sam Chambers
May 16 (Bloomberg) -- Mkt share of a combined co. would be
50% in broadband (including cable) and 57% in mobile, which
would be sufficient to give European regulators a “serious
headache,” RBC credit analyst writes in note.
* RBC: Vivendi’s decision to reject Bouygues’s higher offer
for SFR is indication of significance of regulatory risk
* Iliad/Bouygues Tel. deal is more probable outcome, as it
would consolidate the mkt. to 3 operators without
creating one outsized player
* Bouygues shrs up as much as 5.5% today, Iliad +7.5%,
Numericable +3.3%, Orange +1.6%
* NOTE: Yday Les Echos reported Orange and Bouygues have
discussed possible transaction several times
* Orange and Bouygues issued separate statements
confirming they were examining opportunities in the mkt
* NOTE: Berenberg upgraded Iliad to buy today, citing a 50%
chance of either Iliad or Orange acquiring Bouygues Telecom
For Related News and Information:
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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
Gaurav Panchal
2014-05-16 10:43:16.387 GMT
By Sam Chambers
May 16 (Bloomberg) -- Mkt share of a combined co. would be
50% in broadband (including cable) and 57% in mobile, which
would be sufficient to give European regulators a “serious
headache,” RBC credit analyst writes in note.
* RBC: Vivendi’s decision to reject Bouygues’s higher offer
for SFR is indication of significance of regulatory risk
* Iliad/Bouygues Tel. deal is more probable outcome, as it
would consolidate the mkt. to 3 operators without
creating one outsized player
* Bouygues shrs up as much as 5.5% today, Iliad +7.5%,
Numericable +3.3%, Orange +1.6%
* NOTE: Yday Les Echos reported Orange and Bouygues have
discussed possible transaction several times
* Orange and Bouygues issued separate statements
confirming they were examining opportunities in the mkt
* NOTE: Berenberg upgraded Iliad to buy today, citing a 50%
chance of either Iliad or Orange acquiring Bouygues Telecom
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
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
Gaurav Panchal