Is France Telecom’s mangled takeover approach for Nordic rival TeliaSonera the worst-received deal in recent times?
From a SocGen equity sales/research flash, wending its way around the City on Friday:
THE DEAL MAKES NO RATIONAL SENSE AND IS VALUE DESTRUCTIVE IN THE LONGER TERM…
Generally the feedback coming through is very negative – ” a poor deal”, “lack of synergies”, “scale as oppose to shareholder value”, value destruction” are some of the views being aired…
FEED BACK FROM LOCALS – Negative both on financials a belief that FT has managed the process with a high degree of contempt especially as they have called this a friendly deal but they have not actually discussed it with the Swedish/Finnish government or the company management. In terms of the price the locals feel that price a way too low and while the government might be tempted around the SEK 60 level, the institutions are looking more for the SEK65 level or higher. Again at those levels the deals will make even less financial sense.
And that’s from a French bank – communicating with its clients. We wonder what SocGen really thinks.
Related links
France Telecom chief on mission to woo sceptics – FT story