Telefonica O2 bid fails to build confidence in sector

The proposed takeover of mobile telecoms company O2 by Telefonica provides little incentive for a mo...

The proposed takeover of mobile telecoms company O2 by Telefonica provides little incentive for a move back into the sector in Europe. According to Jacqueline Aldhouse, head of offshore equity analysis at Forsyth Partners, Telefonica's bid represents a more moderate form of the growth of any price mentality that led to such a crisis in the sector at the turn of the Millennium. "This bid looks like an isolated incident in the sector," says Aldhouse. "There is also a perception that the purchase price is expensive, which could potentially lead to a selling down of Telefonica." She points ...