Given the recent legislative improvements in the EU telco market
and how negative, in general, investors are on anything EU, I think
the Spanish sector of TEF could generate more alpha than the
Latin America assets, over the next 2 to 5 years.......
But will the Spain PM allow AT&T to pay $ 20 per share to TEF
investors....a 43 % premium, at current market prices, for their
current TEF stock ?
If yes, then both investors and AT&T could profit from a better
telco environment in the EU and S America.....but European
governments have a poor record at making pro-growth decisions.
Just ask the 27 % of Spaniards who are unemployed !