Spain’s second-largest operator Orange is considering a possible bid for fixed-network provider Jazztel, according to Bloomberg.
A potential move by Orange follows Vodafone’s €7 billion bid earlier this month for Spanish cable operator Ono, as leading European operators pursue quadplay strategies.
The French operator is in discussions with investment banks. Other options might include a bid for smaller mobile rival Yoigo.
Yoigo is owned by TeliaSonera which pulled a sale of Spain’s fourth operator in April last year after bids, including from Orange, were not up to scratch.
Vodafone’s bid for Ono has so far been rejected by the cable operator’s board.
Jazztel has 1.4 million broadband subscribers and also offers a fixed telephony service. And it has a mobile service, thanks to an agreement with Orange.
But Orange’s interest might be dampened by a relatively high asking price, said analysts.
Jazztel’s stock has gained nearly 30 per cent this year, valuing the company at about €2.5 billion ($3.4 billion).
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