European M&A status

European M&A status

2006 could continue on the 2005 trend. Alignment, IPOs, takeover or strategic alliances will continue to feed companies announcements. Already some speculation arose (BT/ ITV or FT/ C&W), while some former rumors continue (NTL/ Virgin Mobile and NTL/Telewest). Meanwhile, BSkyB bought EasyNet and Belgacom took over Telindus. Thus is regarded as a potential target for BSkyB, But it is not the end of the story. Many other deals could be done. TDC (Denmark) is for sale and it is likely that NTC could control the Danish operator. Swisscom and Eircom are also among the favorite targets. What is at stake? The traditional phone company model is obsolete. The market approach and services are evolving. The network was the main asset some decades ago, now it is content and services. Fixed/ mobile convergence, triple or quadruple play will now drive the restructuring of the market. Broadness of services, geographical coverage, scale, profitability (current and future), will be the key factors for success. The new service provider will be able to give its customer “the feel that anything they can do in one place they can do everywhere at the same time," as said by Verizon CEO Seidenberg.