TPG was the worst-performing stock on the ASX200 on Monday, ultimately closing -11.7% lower after data services business Vocus abandoned its $US4.2bn bid for TPG fibre assets – there has been a noticeable trend of suitors walking away from deals of late. TPG has said it will keep exploring its options and has strong interest from other outside investors, although the price/deal might not be as attractive. Doubt around the deal has been creeping into the market for a few weeks, causing TPG shares to drift lower, but now they’re back to levels not seen since before the original bid was announced in August.
- We prefer the quality and strength of Telstra (TLS) and/or the growth available from Aussie Broadband (ABB) as our preferred telco picks into 2024, especially as debt levels are likely to pressure TPG dividends over the coming years.
MM is neutral toward TPG
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