TPM Bids for IIN | Telecommunication Sector from Sunset Strip > This sector will benefit from industry consolidation via M&A while the big telco in Australia...

TPM Bids for IIN | Telecommunication Sector from Sunset Strip > This sector will benefit from industry consolidation via M&A while the big telco in Australia and NZ continue to deliver stable yield in low growth environment. The transition to online models and smart phone take up will continue to drive the usage of data from record levels to new record levels. Stocks in play: We maintain our preference in TLS and IIN while remain big fan of SPK, MTU and TPM in the long term. M&A is expected in this sector with history of TPM bidding on IIN. TPM expanding AMM holding to substantial to get into VOC/AMM merger plans. Short term MTU's recent outperformance may drive profit taking. ACCC move on TLS copper pricing will help the next tier....benefit for recent underperformers like IIN and VOC. LONG IIN & SHORT MTU - Given the substantial outperformance of MTU over IIN, the departure of IIN founder and previous bid by TPM, we see better risk/return profile in IIN over MTU in the near term.