Orange has reportedly hired investment bank Credit Suisse as an adviser to look at acquiring Euskaltel, based in northern Spain, with a market value of €1.3 billion.
A merger would allow Orange greater access to Spain’s growing broadband market and Euskaltel’s 800,000 customers. The move would consolidate its market position as number two in Spain.
Euskaltel’s main shareholder is Spanish bank Kutxabank, which holds 21.3 per cent, followed by British fund Zegona with a 15 per cent stake. Zegona recently raised funds with the aim of increasing its ownership of Euskaltel by up to 12.5 per cent.