Telefónica will close the largest operation in its history by merging its British subsidiary
Telefonica will carry out this Tuesday the merger in the United Kingdom between its British subsidiary, O2 and the telecommunications company Virgin Media Liberty after receiving all the relevant authorizations and the approval of the National Securities Market Commission (CNMV). Both parties will begin the integration process on June 1.
O2 will contribute annual revenues that, in the last year, were 5,962 million pounds (6,900 million euros) and a customer base that exceeded 27 million mobile accesses at the end of the last quarter, while Virgin Media, for its part added more than 30,000 new clients and added six million fixed service clients and more than 3.5 million mobile clients and closed 2020 with 5,129 million pounds of revenue (5,965 million euros), according to Europapress.
The agency also points out that the joint venture plans to invest 10,000 million pounds in the next five years in infrastructure (11,628 million euros) since both entities believe that this union will generate synergies valued at 6,200 million pounds (7,211 million euros at the current exchange rate), excluding integration costs. In addition, he adds that the new entity will be directed by a board made up of equal parts by directors of Telefónica and Virgin Media with Virgin director Lutz Schüler, at the head, as CEO.
Regarding the Telefónica price, we see that its minimum price is set at 4.04 euros and the maximum at 4.08 euros per share. Thus, its medium-term support is 3.65 and its resistance is 4.208 in this time frame. In the long term, the support is 3.123 and the price to be exceeded stands at 4,524 euros per title.
Regarding the premium technical indicators developed by the Investment Strategies analysis department, which measure the trend, the fast and slow total moment, the volume and the volatility of the share, they place the entity in a bull phase of the cycle, giving it a grade of 8 out of 10.
If we disaggregate these indices, it can be seen that the trend registers an upward evolution both in the medium and long term. The fast and slow total moment follows the same path when reflecting a positive result. The volume of securities, on the other hand, presents a mixed dynamic, decreasing in the long term and increasing in the short term. Finally, the range of amplitude is the negative point of the analysis with an increasing evolution in the medium and long term.
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