France Telecom (FT) is prepared to make acquisitions in Europe again and is interested in Spanish operator Yoigo, according to a Financial Times report quoting CEO Stephane Richard.
The news comes following a number of non-core disposals in Europe over…
France Telecom (FT) is prepared to make acquisitions in Europe again and is interested in Spanish operator Yoigo, according to a Financial Times report quoting CEO Stephane Richard.
The news comes following a number of non-core disposals in Europe over the past twelve months as FT has sought to focus on market leading assets and faster growing emerging markets.
In the last year the French incumbent has sold off its Austrian and Swiss units, while being acquisitive in Egypt with its purchase of Mobinil.
Richard said in the interview that FT would not make a lot of acquisitions, but would be following developments in European markets it operates in closely.
It was reported earlier this month that TeliaSonera has enlisted Deutsche Bank to offload Yoigo. A figure of €1bn or more was suggested for the Swedish telco’s 76.6% stake in the Spanish player.
FT’s position is complicated by uncertainty it is facing at home, with low-cost challenger Free, which launched earlier in the year, eating into the profits of established players.
Today FT posted H1 2012 results that showed a drop in profits and revenues, but also demonstrated that it was starting to plug the leak of its subscribers to Free.
The telco also reiterated its commitment to lowering its net debt to EBITDA ratio, which currently stands at 2.11x, to 2x.
Quashes talk of DT merger
Richard also dismissed any talk of a merger between FT and Deutsche Telekom (DT). The two groups have partnerships and co-operations in several countries, but the CEO said he didn’t think a merger would create value or appeal to the markets.
Richard did concede that acquiring DT’s stake in their UK JV Everything Everywhere could be a possibility, but expressed doubts that DT would want to sell.
