MILAN (Reuters) - Shares in European telecoms rallied across the board on Monday after a report saying the European Commission was set to clear a merger in the Netherlands fuelled fresh optimism about deal-making in the sector.
People familiar with the matter told Reuters that Deutsche Telekom
The report sent shares in Tele2 rallying 9 percent, while Dutch market leader KPN
"The Dutch telecom market will consolidate from four to three players with the approval of the Deutsche Telekom - Tele2 deal, reducing competition," said Jauke de Jong, a research analyst at AFS Group in Amsterdam.
He said the deal also indicated that the European Commission could have a more favourable stance towards consolidation in other European countries such as France.
Several telecoms shares such as Vodafone
Telecoms have been underperforming over the past few years as pricing pressure, competition and costly network upgrades have been squeezing margins, keeping investors away.
(Reporting by Danilo Masoni, editing by Julien Ponthus)