Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Euronext Paris  >  Orange    ORA   FR0000133308

ORANGE

(ORA)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Orange : Engages Bouygues in Telecom Merger Talks -- Update

share with twitter share with LinkedIn share with facebook
share via e-mail
0
01/05/2016 | 07:10am EST
By Inti Landauro And Sam Schechner 

PARIS--French telecom operator Orange SA has entered preliminary talks to buy the telecom assets of construction-to-media conglomerate Bouygues SA in an attempt to consolidate France's cutthroat broadband and mobile industries.

The two companies said Tuesday they had signed a confidentiality agreement. The move paves the way for the firms to exchange crucial financial information to assess a possible deal, deepening preliminary talks that have been under way since October.

"These discussions aren't limited by any particular calendar and hold no commitment to any particular predefined outcome," Orange said.

A deal would help France's telecom operators recover a yearslong price war stemming from the rise of a fourth mobile operator owned by Iliad SA.

Bouygues Telecom suffered the most from the subsequent price war, because it had a larger staff relative to its base of subscribers. The increased competition also affected competitor SFR, leading then owner Vivendi SA to embark on spree of asset sales that eventually led to SFR's purchase by cable magnate Patrick Drahi.

Shares in France's telecom sector rose sharply early Tuesday on hopes that an Orange-Bouygues Telecom deal would ease competition and bolster prices. Orange and Bouygues shares rose 1.3% and 0.2% respectively in early trading. Shares in cable and mobile-telecom operator Numéricable-SFR SA surged 8% while Iliad rose 2.9%.

A combination of Orange, France's biggest operator, and the No. 3 operator Bouygues Telecom could require the disposal of significant assets to receive approval from antitrust authorities, according to analysts.

Orange and Bouygues didn't provide any estimates valuing a potential deal. According to French weekly Le Journal du Dimanche, Orange is preparing a 10-billion-euro ($10.08 billion) offer for Bouygues Telecom. The former national telecom monopoly would pay Bouygues EUR8 billion in shares and EUR2 billion in cash, the weekly said on Sunday.

Both companies have declined to comment on the report. The French government, which owns a 23% stake in Orange, declined to comment Tuesday.

An Orange-Bouygues deal would give Orange, formerly known as France Telecom, heft ahead of what European telecom executives expect will be a winnowing of their herd in the face of stiffening competition from international rivals. Telecom chieftains say they need to be bigger to compete with Silicon Valley firms that increasingly offer a free suite of communication services, from text to video chat.

Executives at Orange have worried their company is too small and risks becoming prey rather than predator when the industry giants begin their hunt.

Orange had a market capitalization of roughly EUR41 billion, compared with EUR54 billion for Telefonica SA of Spain and EUR76 billion for Germany's Deutsche Telekom AG, at the end of last week.

If Orange takes control of Bouygues Telecom in a mostly stock deal, the combined company could see its market capitalization grow to as much as EUR50 billion, depending on how investors regard the deal.

Write to Inti Landauro at inti.landauro@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
BOUYGUES 0.48% 37.35 Real-time Quote.19.18%
ORANGE 0.22% 13.59 Real-time Quote.-3.99%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on ORANGE
12/06ORANGE : Press release- The EIB supports Orange's network deployment in AMII are..
GL
12/04Communications Services Up On Increased Risk Appetite -- Communications Servi..
DJ
12/04EUROPE : European shares jump 1% as report revives U.S.-China trade optimism
RE
12/04Orange CEO says EU authorities are open to pan-European telecoms mergers
RE
12/04Modest Orange dividend overshadows European mobile mast plans
RE
12/04Orange Details Strategic Plan Until 2025
DJ
12/04ORANGE : CEO wants French state to remain as a controlling shareholder
RE
12/04ORANGE : presents its new strategic plan Engage2025
AQ
12/02ORANGE : Ex-dividend day for interim dividend
FA
11/28A union between Orange and Deutsche Telekom?
More news
Financials (EUR)
Sales 2019 41 937 M
EBIT 2019 5 531 M
Net income 2019 2 586 M
Debt 2019 26 967 M
Yield 2019 5,22%
P/E ratio 2019 13,9x
P/E ratio 2020 13,0x
EV / Sales2019 1,50x
EV / Sales2020 1,49x
Capitalization 36 038 M
Chart ORANGE
Duration : Period :
Orange Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends ORANGE
Short TermMid-TermLong Term
TrendsBearishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 29
Average target price 16,30  €
Last Close Price 13,59  €
Spread / Highest target 39,8%
Spread / Average Target 19,9%
Spread / Lowest Target 1,55%
EPS Revisions
Managers
NameTitle
Stéphane Richard Chairman & Chief Executive Officer
Ramón Fernández CFO, Deputy CEO-Finance & Strategy
Mari-Noëlle Jégo-Laveissière Senior EVP-Innovation, Marketing & Technology
Charles-Henri Filippi Lead Independent Director
Helle Kristoffersen Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
ORANGE-3.99%39 821
VERIZON COMMUNICATIONS8.84%253 069
NIPPON TELEGRAPH AND TELEPHONE CORPORATION24.70%93 452
DEUTSCHE TELEKOM AG1.65%78 940
SAUDI TELECOM COMPANY SJSC--.--%50 348
BCE INC.19.73%43 998