Eutelsat and TDF in potential merger
By Julian Clover
April 23, 2007 17.44 UK
Active trading in Eutelsat shares has fuelled speculation that the satellite operator could be heading towards a multibillion Euro merger with telecommunications and broadcast infrastructure group TDF.
According to the French financial magazine Challenges, la Caisse des dépôts et consignations (CDC), which holds 26% in Eutelsat and another 24% in TDF, believes a combined entity would have benefits to both companies.
“The new entity, which would hold a key position in the sector of broadcasting and telecommunications, would be worth around €8 billion, based on global sales of about €1.4 billion,” explains the magazine.
However, in order to achieve its aim CDC would first have to convince the Spanish operator Albertis, which holds 32% in Eutelsat, and the American TPG, which has a 42% stake in TDF to go along with the project.
Shares in Eutelsat rose 1.7% on Monday after heavy trading in the stock.
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