French telecom shares jump after Iliad drops its bid for T-Mobile US. Consolidation would help the wider telecoms market, but Iliad is under no pressure to trade, says Breakingviews Quentin Webb.
So you can't stop Hutchison cheap low volatile. Happening -- -- Simon now though about what really -- can do whom and wrong on its own -- -- joining restored by this -- when -- when you read the piece yesterday about yet. The the end of that team evolved deal that that that seems to make sense. Given that the froth and it's about -- what you're saying. But but everyone's talking about. Possible time would we -- and from is -- gonna happen. We'll see I mean the great hype and France's that you get 43 consolidation in the -- market their full -- and I'm an orange. Week Iliad and -- the fall and when asked if I was up for sale ever and I'm -- that a deal with week would consolidate our market I've kind of market were -- -- kind of price increases. Instead have Patrick draw he came in with his -- -- -- and aborted sale of market didn't. I'm shrink its whole and this is that the makes it's that. Company which feels this the list is weak which is sort of in the weakest position all right. So so there's a lot of excitement Europe it. Obviously among them -- passes and in French telecommunications because they think we -- he's consolidation we're gonna see some some some action is separate box. -- that is seems to me that there is a lot of animosity between Sweden and yet. And that might prevent anything from happening so I think that's. It plausible and there were talks earlier this year and there were reports that there was a ton of valuation gulf of this much is. Three billion -- areas between the two sides ID month and week want to sell his. Telecoms. Arm for us something of the order of a billion Ares and on the other side he had wasn't willing to pay much more than five -- You know unit needs being kind of sophisticated emanate kind of -- up to big. The gap to bridge. How is -- what what happens that we do so yet comes in Iran and starts. -- I guess the bottom of doing deals target dead kid getting get a good deal out of this hole what's gonna happen now what are we gonna put this to complete debate at the site. Well there are various dynamics going on so really -- still has a commitment to roll I'm more of a kind of high speeds. Network across from so actually if it -- to do a deal with -- quick to be -- on the other hand we get in some sort of pain. That the longer one leaves the company struggling the last it's worth and maybe the -- a deal would be so there's a lot of kind of external pressure. But analysts and the government in fact would quite like C a deal happening but the dynamic -- Funny it's not necessarily obvious that the deal content straight away and by the way there's a huge banks and Elian chest and say they're up something like 13%. Some of that sort of consolidation -- but some of it Taylor is I think relief in a few. They haven't tried status over an ambitious deal in the US whether it could have goal on stock and kind of uneven Levitt himself said that. At two different things going on. But you'll messages be careful about about buying into throngs of French telecommunications. As a play right now because this. The browns might be a little bit premature well there was a stalemate before Iliad went -- from the -- direction took itself off to America. I'm on no show without stalemate I was intrigued to pursue enemy target when many thanks -- -- peace -- on the breaking news website. You should hope that he's -- 1730. -- BST -- Mexico for.