TPSA has been mentioned by Danish press as a potential buyer of Bite, a Danish mobile operator, from TDC for PLN 1.3 – 1.8bn. The list of potential bidders includes also Finland’s Elisa and several investment funds. TPSA declined to comment on the press speculation.
Our view: TPSA parent company France Telecom once said that it is fine if TPSA has any regional M&A plans. Considering TPSA strong cash generating ability, decreasing domestic investment needs and the absence of any domestic acquisition targets (for antimonopoly reasons), we think that there might be a seed of truth in the news. Nevertheless, until we hear more on that front, we reiterate our Hold rating for TPSA.