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Re: Talk Talk review options with Vodafone
Post moved to appropriate area
A bit more detail from behind the paywall
Quote:
TalkTalk has asked investment bank Lazard to review its options after several groups, including Vodafone, approached the UK broadband company about potential deals, according to people briefed on the matter.
British telecoms executives have long called for greater consolidation in the domestic broadband market, claiming that the array of companies supplying mobile and internet contracts has created excess competition, driving down prices and stifling investment.
The sector has suffered from weak returns and falling valuations in recent years, as highly competitive markets and regulatory pressures led to top-line pressure and earnings decreases.
Vodafone, the fifth-largest player in the UK broadband market, has looked at the possibility of doing a deal with TalkTalk multiple times in the past but has tripped up over questions around the value of the business, according to people with direct knowledge of the matter.
TalkTalk was taken private just 16 months ago by Toscafund, an asset manager run by the Brexit-supporting Tory donor Martin Hughes, for 97p per share, valuing the company at £2bn including debt.
The internet company was advised by its independent directors in 2020 to accept the Toscafund bid on the grounds that TalkTalk would need significant investment in order to scale, which it would be difficult to achieve if it remained publicly listed.
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Last edited by Hugh; 08-04-2022 at 13:56.
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