Our Eurpean Telecom Services index was up 1.2 percent for week 38, outperforming the EuroStoxx 50 (+0.6%). Forthnet, the Greek ISP, led as it gained 66 percent on takeover news. Altice Europe (+14%) and Tele2 (+7.0%) also did well. Iridium, down 16 percent, was the weakest stock. Year-to-date, our index is up 9.0 percent, far behind the EuroStoxx 50, which is up 19.0 percent.
The main news of last week was mostly M&A related:
- Forthnet (+66% in week 38) may finally have a suitor.
- The Inmarsat (-1.1%) deal appears to be heading for closing.
- Digital Realty (+0.6%) is selling some of its US data centres, but it could be in the market for an acquisition nonetheless.
- In Romania, Digi (+1.7%) is among the candidates for buying the mobile assets of Telekom Romania, which is controlled by Deutsche Telekom (+1.6%), via OTE (+4.0%).
- Bad news for Digi came out of Hungary, where it may be excluded from the upcoming 5G auction.
- Deutsche Telekom was rumoured to be planning the closer integration of its listed US subsidiary T-Mobile US. Ths could involve the latter's CEO John Legere departing, but after the planned acquisition of Sprint is closed.
- One more M&A deal involved Turk Telekom (+1.8%), seeking to sell its majority stake in Turk Telekomunikasyon.
Siminn (+1.8%), of Iceland, was once more buying back its own shares. OTE (+4.0%), Vodafone (-1.2%) and Telefonica (+1.8%) were active on the bond market. Iridium (-16%) was seeking a tie-up with OneWeb (unlisted) for the LEO (low orbit) segment.
