Sunday, May 15, 2016

Brussels vetoes the sale of O2 to Hutchison – Radio Sunday

Telefonica said there are a number of options, such as a total or partial sale, or an IPO if the European Commission blocked the sale of O2 to CK Hutchison from 10.500 million pounds.

the European Commission stated that allowing Hutchison acquire O2 UK, which belongs to the Spanish Telefonica, for 14,900 million dollars, would have raised prices in the industry British mobile telephony and left only two rivals: EE, recently acquired by BT Group and Vodafone. The signature indicates that while in the past the European Commission approved the merger of mobile operators in recent months has shown contrary to these integrations.

“Competition must be sustainable and regulation should support it.” Yesterday, Moody’s downgraded from stable to negative the outlook on Telefonica once known the Brussels decision to veto the sale of its British subsidiary O2 Hutchison .

The group will launch a signal to the market which is available on O2 at least in its first half results, deciding if you keep it described as “for sale” or accounted for nearly 2,000 points euros in OIBDA and the significant cash flow business. A final decision is expected within weeks.

José María Álvarez-Pallete, the new CEO of Telefonica told analysts consider other options.

“That O2 remain in Telefónica this year brings better coverage of the dividend, “he added. In fact, the agreement Hutchison and Telefonica is the second capsizes in Europe shortly after the decision of Telia and Telenor to rule out the merger of its subsidiaries in Denmark by the conditions imposed by Brussels. In any case, the speculation about the future of O2 have soared in the markets.

On Thursday, Britain’s Sky News group said Apax, CVC and KKR are preparing a bid for the division, although several sources said it is difficult to offer an attractive price for the operator. Telefonica shares rise this time around 0.2% after winning yesterday’s session more than 2.2%.

LikeTweet

No comments:

Post a Comment