French incumbent Orange has reportedly enlisted BofA Merrill Lynch for advice on its strategy in Spain where it operates mobile services.
The bank is evaluating the potential for a takeover of triple-play operator Jazztel by Orange that could amount to…
French incumbent Orange has reportedly enlisted BofA Merrill Lynch for advice on its strategy in Spain where it operates mobile services.
The bank is evaluating the potential for a takeover of triple-play operator Jazztel by Orange that could amount to €2.7bn, according to financial sources cited by El Confidencial.
Orange previously hired BofA Merrill Lynch to examine a potential IPO of its UK joint venture EE, before abandoning listing plans in January.
Earlier this month, rival mobile operator Vodafone bought cableco Ono for €7.2bn, which allows it to offer quadruple-play services. Market leader Telefonica already offers quad-play services.
In Orange’s Q4 conference call in early March, Orange CEO Stephane Richard reaffirmed the group’s commitment to Spain.
He said there was “nothing on the agenda” for now, but said that “Spain is, apart from France, probably the key market in Europe where we will try to really focus our resources to play the consolidation”.
Jazztel’s shares have risen more than 36% so far this year in anticipation of consolidation in the Spanish market. Analysts have previously told TelecomFinance that the Ono deal was likely to be the catalyst for M&A in Spain as it leaves Orange, the third largest mobile operator, unable to offer the same packages as its two larger rivals.
A further option for Orange would be an acquisition of fourth player Yoigo, which is the country’s smallest network operator.
Its parent, Nordic telco TeliaSonera, previously tried to sell the unit and Orange was reported to be keen. But the process broke down a year ago due to differences in valuation.
