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Possible Nokia Bid for Alcatel Wireless Is ‘Credible’: Barclays 2013-10-14 06:57:40.179 GMT
By Sam Chambers Oct. 14 (Bloomberg) -- If Nokia were to buy Alcatel’s wireless business it would benefit both cos., while creating a tougher competitor for Ericsson, Barclays says in note. * Says ex-U.S., global telco rev., Ebitda are falling; placing significant pressure on operator capex * Says growth is likely to return in Europe, although it won’t be sufficient to offset pressure in Japan, other mkts in which network upgrades have been largely completed * Barclays cuts Ericsson to underweight due to potential downside from M&A, possible rev. disappointment * Keeps PT of SEK68; a 20% downside to current price * Raises Alcatel to overweight, PT by 143% to EU3.30; 20% upside * Raises Nokia to equalweight, PT by 82% to EU5; 2% upside * NOTE: Telco equipment relative value here * NOTE: Alcatel reports 3Q results on Oct. 31, Nokia reports 3Q on Oct. 29, Ericsson reports 3Q on Oct. 24
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--Editor: Jurjen van de Pol
To contact the reporter on this story: Sam Chambers in London at +44-20-7673-2021 or schambers7@bloomberg.net
To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net