Quote:
Originally Posted by Pierre
Then why pay £3B for them, If you are going to discard them considering the VM footprint is around 50% of OR.
I know we’re not disagreeing. I can’t see the the reasoning behind the deal, but who knows!
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The professed aim would be that VM could operate TalkTalk more cost effectively as it has its own network which it could transfer Talktalk customers to and there would be purchasing and back office savings too. Though TalkTalk's contracts with the altnets and Open Reach may have several years left to run. And there are the other significant issues with this which we have discussed.
Other benefits that would likely be pitched are the benefits for VMO2 to have a value brand during a recession and if they're stretching things, bundling in mobile contracts for TalkTalk customers too. The latter does not have a good history.
I still think their reasoning for tabling the offer is to get Vodafone to pay more for TalkTalk (or put them off buying it) and get some competitive intel on TalkTalk. If they can do this without buying TalkTalk then perfect.
But as you rightly say: Who knows?