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Tele2 Breakup Becoming Increasingly Probable, Berenberg Says 2014-01-08 08:00:13.157 GMT
By Sam Chambers Jan. 8 (Bloomberg) -- Tele2’s growth story has been a “mismanaged let down,” co. unlikely to exist in current form in a yr’s time, Berenberg says in note. * Berenberg: Tele2’s Dutch business is valuable to Vodafone/KPN and its Norwegian business could be valuable to Telco Data, who acquired 4G spectrum at Tele2’s expense * Sale of these two units would make the sale of co’s Swedish unit to Hutchison a more likely outcome * Clarity on a potential breakup may come in 1H 2014; could offer 26% upside from current share price * Raises stock to buy and lifts its PT to SEK86 (incorporating 50% chance of breakup) * NOTE: In FY12, Sweden comprised 29% of Tele2’s total rev., Norway 11% and Netherlands 12%: Bloomberg data * Related: Tele2 luring Hutchison as Kinnevik seen open to sale * Related: In Nov, Tele2 said it may consider selling its Dutch fixed-line business
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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 editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net