The ongoing German spectrum auction appears to be taking a toll on the European telecoms sector. Most German shares ended week 15 down. A number of M&A related reports couldn't prevent the Telecompaper Stock Index European Telecoms Services from ending week 15 with a loss of 0.9 percent. The EuroStoxx 50 index closed the week unchanged.
The German spectrum auction passed the EUR 5 billion mark, putting a dent in the share price performances of Deutsche Telekom (-1.0% for the week), Vodafone (-0.6%), Telefonica Deutschland (-7.2%) and United Internet (-3.8%). In the Netherlands, the regulator put out an advice on spectrum caps, ahead of two auctions planned to take place between end 2019 and 2022.
It was a busy week for the M&A market.
- Telenor (-0.4%) expanded into Finland through the acquisition of a majority stake in DNA (+8.6%).
- Zayo (+5.0%) once again was at the centre of takeover rumours.
- QSC (+7.9%) was making progress with the sale of its Plusnet subsidiary.
- Zegona (+2.5%) raised its stake in Euskaltel (+2.1%).
- There were reports of MTS (-1.8%) being interested in OTT provider Ivi.
- The Sunrise (-2.6%) AGM rejected a proposed capital hike (+0.4%), as minority shareholder Freenet (-0.4%) said it needed more time to consider the proposed UPC Schweiz acquisition from Liberty Global.
The Italian mobile services market was lively as ever, with all four MNOs launching new services and promotions.
- Newcomer Iliad (+0.3%) came with a temporary offer.
- Wind and 3 Italia, units of Ck Hutchison (-1.6%), expanded an existing plan and launched a converged offering.
- Vodafone Italia introduced a new loyalty scheme and unveiled a plan for under 30s.
- TIM expanded its loyalty scheme and a promotion.
Telecoms service providers were quite active on the debt markets.
- Megafon (+0.2%) and TIM placed bonds.
- KPN (-1.7%) and Cyfrowy Polsat (+0.6%) received funding from European institutions.
- Forthnet (+17%) saw the Tunesian state become a 14 percent shareholder through debt conversion.
