Jazztel in Talks With TeliaSonera on Bid for YoigoManuel Baigorri and Rodrigo Orihuela
Jazztel Plc is in talks with TeliaSonera AB over a possible offer for its stake in Spanish mobile-phone unit Yoigo SA, according to a regulatory filing.
The process is “still in the initial phase,” according to the filing, and “therefore it isn’t possible at this time to anticipate the terms and conditions of the transaction if it were to materialize”. The company would also seek to acquire the remaining shareholders’ stake if required, it said in the filing.
Jazztel is talking with advisers about a potential transaction, which it may finance using its own shares, people with knowledge of the matter told Bloomberg News yesterday, asking not to be identified because the discussions are private. The Spanish broadband provider wants to avoid a bidding war with other interested parties, which could include Orange SA, they said, and hasn’t decided yet whether to proceed with a bid.
Offers may value Yoigo at less than 500 million euros ($645 million), the people said. In 2012, some analysts said that Yoigo, the fourth-biggest mobile operator in Spain, may be valued at about 1 billion euros. Non-binding bids for the company are due today, one of the people said.
Vodafone Group Plc, which bought Spanish cable provider Grupo Corporativo ONO SA for 7.2 billion euros earlier this year, does not plan to bid for Yoigo, according to three of the people.
Representatives for TeliaSonera, Vodafone and Orange declined to comment.
Jazztel shares rose 0.1 percent to 10.27 euros at 10:07 in Madrid. TeliaSonera slipped 0.3 percent to 49.99 kronor in Stockholm.
TeliaSonera, Sweden’s largest phone carrier, said in July it will revisit plans to sell its Spanish mobile unit, 15 months after taking the operator off the market because offers from bidders, including Orange, weren’t high enough.
Competition at its Yoigo carrier in Spain is “fierce,” Chief Executive Officer Johan Dennelind said in a statement in July, forced by a “strong convergence trend” that puts pressure on TeliaSonera’s mobile-only business in that country.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.