Orange has identified the Spanish regional cable operator Euskaltel as a possible take-over target.
According to El Economista, citing several sources, its interest could increase in the coming months, adding that relations between the two companies are already “excellent”.
Indeed, Orange already provides access to its mobile network to Euskaltel (Basque Country), R (Galicia) and Telecable (Asturia), the three companies that make up the Euskaltel group.
El Economista says that the nature of Euskaltel’s shareholdings suggests its owners would be open to talks with possible investors providing certain assets or investments in the Basque community are protected.
Its majority shareholder Kutxabank currently holds a 21.32% stake in the company and has been actively selling shares in recent months.
At the same time, the UK fund Zegona, a 15% shareholder, had to withdraw its offer to take over Euskaltel last month after realising that 75% of Zegona’s shareholders were not interested in selling to it.
This has potentially opened the door to (amongst others) Orange.
It has been present in Spain for 20 years and is the French group’s largest business outside its home market.
