EU COMMUNICATIONS: Iliad Proposed As Strategic Suitor For TITIM Telco Ops

TITIM 

Article presents Iliad as a strategic suitor for TITIM’s telco operations though given recent efforts to acquire Vodafone Italia this doesn’t come as a huge shock. This would be a four-to-three merger in Italy which could face more stringent regulatory insight given the recent move from five-to-four on the Swisscom/Vodafone deal though competition is still elevated in Italy compared to some markets and European authorities are broadly seen as more agreeable than in the past.

• “According to what Il Giornale has learned, Iliad has entrusted a large international consultancy firm, Boston Consulting Group, with the mandate to study a possible way to acquire Tim's telephone activities”.
• Also flags that CVC has given itself until end-Feb to decide on attempting to acquire Vivendi shares and launching a takeover bid with a view to selling off Tim Brasil and Consumer.
• Curve 3-4 tighter today though the equity is flat. Reminder that only the 6.875% 28s and 7.875% 28s lines feature change-of-control language at 101 but trade at 109/113 respectively.