* Mixed trends, but bigger picture drivers right now
TI’s domestic recovery remains a work in progress with service revenue trends
marginally better, but EBITDA worse. And in Brazil, TSU continues to deteriorate, with a
tough fight ahead to regain post-pay traction. Nevertheless, operational trends may take
a back seat to the announced saving share conversion plan and ongoing uncertainty
around the intentions of new shareholder Xavier Niel.
* TI announces saving share conversion plan
TI has proposed the voluntary conversion at 1 Sav + E9.5c for 1 Ord. Ord shareholders
will vote to approve on 15th Dec (2/3 majority required), Savs on 17th (simple majority
required). TI stock should benefit from the c. E570m capital increase and the positive
NPV from reduced Saver dividend premium.