- Sources tell Bloomberg Orange (ORAN -0.9%) and Deutsche Telekom (DTEGY.PK) are delaying the sale of their Everything Everywhere U.K. mobile JV (has an early 4G lead) as they wait for AT&T (T +0.5%) to make its expected entry into Europe. AT&T has reportedly eyed a number of European assets, including EE.
- Likewise, Bloomberg joins other news sources in reporting Telefonica (TEF +0.2%) is thinking of growing its Telecom Italia (TI -1.5%) stake by taking full control of holding company Telco.
- Debt-laden European carriers have been shedding assets left and right. But they're now showing an interest in getting bigger, thanks both to AT&T and a growing willingness by regulators to sign off on consolidation.
- Orange CEO Stephane Richard has predicted approval of a proposed merger of Telefonica and KPN's German units, which would lower the number of mobile carriers in Europe's largest market to 3, would "create an [M&A] earthquake" on the continent. Richard added Orange would attempt to grow its Spanish/Polish positions, and consider wireline acquisitions in Belgium and Romania, if regulators don't object.
- EU antitrust chief Joaquin Almunia has said there's no "magic number" for how many carriers need to be in a market. Meanwhile, proposed telecom rules stand to encourage M&A, both by hurting carrier profitability in individual markets and by harmonizing rules across markets.
- Vodafone (VOD +0.3%) is expected to invest a chunk of its Verizon Wireless windfall in European assets. And there's plenty of speculation AT&T will make a bid for the giant international carrier.
European telcos look to get bigger as AT&T looms
Sep 13 2013, 10:41 ET