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Breakingviews: Orange/Jazztel deal pricey

Tuesday, September 16, 2014 - 03:19

Sept. 16 - France's Orange is set to buy Jazztel to boost its mobile operation in Spain. Breakingviews’ Quentin Webb says the deal, which values Jazztel at €3.4 billion, looks expensive, but is necessary.

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-- oranges picked off and just tell allowing it to better compete with Telefonica Vodafone in Spain. Quick web. I am from breaking views is -- a comment on this one I'm. Fiona ma hog Brothers for an account a piece about -- says. It's a little bit pricey at this yes I think the view within breaking news is that it's a necessary dale orange risked being. Left behind in Spain because its two biggest advances or be able to -- what's called -- play which means fixed and mobile services and school ban them TV. And it was laws the in my -- operates. So perhaps is still but the price is expensive so it's something like. Thirteen point five times. Next -- abdominal innings the full current accounting charges. Tax and interest what sort of savings -- we get what sort of well substantial say that deal is valued at an enterprise value of three point eight billion years and they say. The net present value less cost. Savings analysts engines would be one point three. -- in -- areas and as we've seen and other deals in this sort of spice. I'm actually people can get a little savings like crunching together in my vote and fixed in Iraq and is a -- says that he's consolidation should benefit the whole market. Isn't it because of the -- yes exactly and also because that they were too. What we would coconut maverick operations in Spain face just -- in the small memo critical Buick and they were doing was kind of on the lovingly prices to back to compete and get market chest say. As you get consolidation ever intends to be more. Kind of considered in that course offerings just now just how was -- Moving on to move on you do your goes right. Is that they asked -- and I'm not sure that's happening anymore I think this deal is ours is subject to act -- happening. Exactly that's right -- orange is made this conditional not only on kind of majority approval from France itself does but on. And just tell sort of swearing off doing a solid deal with you again. So it looks a bit in retrospect like just tells me one year ago was partly designed to smoke -- a bid for the company itself. I'm this comes pretty hot on the heels of a very different on that. Bad deals in Spain as well it is that it now she's into the timing intense consolidation in this market. I think it is it's in Spain yes but this trend of sort of conventions led them NA has already spawned a whole -- of -- going in Spain but in. -- and Germany we just so -- yes they in fact often ignored takes and that's definitely something -- gonna continue you know. And mobile companies or telephone companies can keep buying cable operators keep kind of smashing together these different services. And digestive duel today orange golf about a 1% as expected I guess the search -- and it doesn't seem like compatible full of reaction orange is going to do it. Staged a rights issue as well as opposed the say you're on an and they don't want central and says it kind of huge thumbs down from the market. Look at very different many kinds of acts the US has told city. East and 1730 BS -- but he confront this piece titled I was gonna bring you science complex of problems --