Orange targets Spain's Jazztel – report

News General Spain 19 FEB 2014
Orange targets Spain's Jazztel – report
France’s largest telecoms company Orange is stepping up its search for a takeover target in Spain as it seeks to avoid falling behind rival operators in the highly fragmented Spanish market, reports Bloomberg citing unnamed sources close to the company. Orange is currently in talks with investment banks about possible bids for operators such as Jazztel and Yoigo, the Spanish unit of TeliaSonera, but may finally opt against an acquisition if the prices are too high, said the sources. Jazztel remains the most attractive proposition, according to the report, above all due to its 1.4 million-strong broadband customer base, but its rising price could be a stumbling block. 

Orange’s Spanish unit is currently the third largest operator in the country, behind Telefonica and Vodafone, and a possible takeover of Jazztel or Yoigo would give it greater cross-selling opportunities in a cash-strapped country in which convergent fixed-line, TV and mobile services dominate. Jazztel has had great success in attracting customers with low-cost broadband, fixed line and mobile plans. Its revenues in 2013, due to be announced next week, are reported to have increased by around 14 percent to EUR 1 billion.

Analysts believe that consolidation in the Spanish market is inevitable this year, with cable operator Ono, one of Europe’s few remaining major cable assets, already having attracted takeover interest from Vodafone and Liberty Global.


 

Categories:

General

Companies:

Telia,  Vodafone,  Jazztel,  Ono,  Yoigo,  Orange Spain,  Telefonica

Countries:

Spain

Tags:

Wireline, Wireless, M&A buyouts & divestments, Market research

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