27 May 2015 by lberuti
If you are an investment banker, you want to manage a portfolio of clients in the TMT sector. Over the last few weeks, a raft of deals have been announced or rumoured. Most recently TWC (time Warner) was at the center of a cable mega merger with Charter, ALTICE confirmed the acquisition of Suddenlink, and VOD (Vodafone) was heavily linked with Liberty on the back on John Malone’s declarations saying what a good fit these companies are. Today, in what many see as a reaction to the tie up of ALUFP (Alcatel) and NOKIA, LMETEL (Ericsson) qlso positioned themselves: Their management said they are open to bigger M&A deals in order to remain competitive in the market. Investors’ reaction was pretty swift, and they pushed LMETEL’s risk premium, which is usually very well behaved, 4bps wider at 56.5bps.