Jazztel, a Spanish fixed-line operator and MVNO, confirmed media speculation it was in discussions about acquiring TeliaSonera’s majority stake in Yoigo – Spain’s smallest mobile network operator (MNO) – through a stock market filing.
In a separate statement, TeliaSonera also acknowledged the discussion with Jazztel “as well as other parties”, in line with earlier comments that it is reviewing its operation in Spain.
Jazztel emphasised talks were very much in the preliminary stage, although Expansion reports the operator has already contacted several investment banks about mounting a bid for TeliaSonera’s Spanish arm.
News of Jazztel’s expansion ambitions comes only days after reports surfaced in the Spanish media that Federico Colom, Orange Spain’s finance director, said Orange would bid for Yoigo or Jazztel should either become available.
Jazztel’s move on Yoigo may well prompt Orange to step up its acquisition efforts. Rival Vodafone has already bolstered its quad-play credentials through the €7.2 billion acquisition of Spanish cable service provider Ono.
TeliaSonera has long wanted to exit Spain, but apparently rejected offers for Yoigo last year as not being up to scratch.
Yoigo is by far the smallest MNO in Spain with around 4 million connections as of end-June, according to figures from GSMA Intelligence.
Telefonica’s Movistar is the market leader (16.3 million connections) followed by Orange (14.8 million) and Vodafone (13.2 million).