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Orange The Key Beneficiary if Numericable Buys SFR: Bernstein 2014-03-07 07:43:46.897 GMT
By Sam Chambers March 7 (Bloomberg) -- An SFR/Numericable tieup would have fewer regulatory barriers, create a more rational mkt and leave Orange as mkt. leader, Bernstein says. * Bernstein: an Iliad/Bouygues deal may subsequently be possible, would probably end price wars * Bouygues/SFR combination would hold 47% share of French wireless subscribers, which would probably require asset sales and/or MVNO remedies * Iliad would be beneficiary in either of these outcomes; Bouygues wouldn’t be able to sustain its broadband price cuts due to increase in its customer base * NOTE: Yday, Orange shrs closed 11% higher, Iliad +7%, Bouygues +6.6%, Vivendi +0.9%, Numericable -5.3% * NOTE: Kepler Cheuvreux says Bouygues’s offer for SFR is superior to Numericable’s. Story * NOTE: In 3Q, Orange had 40% share of French wireless subscribers, SFR 32%, Bouygues 17%: Bloomberg Industries data * NOTE: In 3Q, Orange had 44% share of broadband subscribers, Iliad 24%, SFR 23%, Bouygues 9%: Bloomberg Industries data
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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 Sam Chambers, Brian Lysaght