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Monday, 11 June 2007 |
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T-Mobile remains the favourite in France Telecom’s proposed sell-off of its Orange business in the Netherlands.
At the end of last month, France Telecom announced its intention to examine “expressions of interest and offers from potential buyers seeking to acquire part or all of the share capital of its subsidiary Orange Netherlands”.
Initial speculation as to a likely buyer for the wireless unit centred on Deutsche Telekom’s T-Mobile arm. In truth that speculation has not moved on much in the days since then, despite reports that up to ten potential suitors have been identified.
A deal would lift T-Mobile to number two in the Dutch cellular market; still behind KPN but ahead of rival Vodafone. T-Mobile and Orange are currently third and fourth in the market, the latter’s position explaining why France Telecom wants out.
FT has announced that it has begun a consultation procedure with the Works Councils of Orange Netherlands. Under Dutch labour laws, they are given a reasonable (if not quite decisive) voice in things like takeovers.
That may prove to be a fly in the ointment for T-Mobile. The reasoning for any amalgamation of the two Dutch operators would doubtless include cost savings and ‘synergy’, twin concepts which tend to make owners and investors swoon but which the employees involved normally translate as ‘job cuts’. Or, in a case like this, ‘massive job cuts’.
Not necessarily a vote catcher.
Jim Chalmers
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