Light Reading – Orange & Hutch: A Tale of Two Takeovers

While Hutchison faces apparent opposition from both UK and European authorities, its deal has been referred to the European Commission (EC). That is not cause for optimism. Since becoming the European Commissioner for Competition in late 2014, Danish politician Margrethe Vestager has taken a hard line against merger activity in the mobile sector, blocking a tie-up between TeliaSonera AB (Nasdaq: TLSN) and Telenor ASA (Nasdaq: TELN) in her native country. Bengt Nordström, the CEO of consulting and analyst firm Northstream , does not expect Hutchison to get the green light but hopes he will be wrong. “It will send a negative signal to the investment community,” he told Light Reading during a conversation at last month’s Mobile World Congress in Barcelona.

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Next read - Orange acquisition of Bouygues Telecom said to be close to completion spoke to Bengt Nordström, CEO of telecoms consultancy Northstream, who has been keeping a close eye on consolidation moves in the European telecoms market. “This development was preceded by a period of very intense price competition between the operators, which is now forcing them to seek scale and save costs through mergers and consolidation,” [...]
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