Friday, June 17, 2005

Consolidation train rolls on

Last month I published a list of IP-related stocks in Europe which I expected to see strong relative performance this month on the back of consolidation speculation. Yesterday one of them, Saunalahti, was confirmed to be taken out by Icelandic investor group Novator. At the end of play yesterday this stock was up 6.2% so far this month. For the group of eleven as a whole, average performance in euros is +3.2%, vs. +0.9% for STOXX Telecom, and +3.2% for the broad market. Iliad and Nextgentel are both up over 10%, and the three German names are up in excess of 5%. Now this morning I am hearing that the unlisted Norwegian broadband/mobile player Chess is about to be taken out. Speculation seems to revolve around TeliaSonera, which is curious given the fact that they are already the number 2 mobile player in Norway. I hope this is a not a tit-for-tat response to the Bredbandsbolaget deal from last month...

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