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RBC dismissive of Verizon/Disney takeover chatter

Published 07/03/2017, 11:31 AM
© Reuters.  RBC dismissive of Verizon/Disney takeover chatter
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  • Take reports that Verizon (VZ +0.5%) is interested in buying Walt Disney (DIS +1.7%) with a New York Post-sized grain of salt, advises RBC Capital's Steven Cahall.
  • He casts some shade on the paper's "well-placed banker" source ("probably well-placed at 5th Avenue's Polo Bar in a pair of brightly colored pants") as well.
  • It's "not fake news" but the paper's legitimacy burden sits somewhere below WSJ, Reuters and Bloomberg, he notes. The Post sometimes gets M&A speculation right, Cahall says, pointing to news about CBS/Viacom talks "following its investigative efforts into media moguls over martinis (at) the 21 Club."
  • "We'd thus advise investors to assign the Post's report a low probability, but perhaps do their own channel checks at the The Algonquin, The Grill and Monkey Bar."
  • Disney's up 1.7% nonetheless, reaching its highest point in six weeks. Verizon is pulling back off a session high it hit 20 minutes ago.
  • Previously: Verizon rumored to be eyeing Disney (Jul. 03 2017)
  • Now read: Verizon And Boeing (NYSE:BA) Team To Fund SparkCognition's Machine Learning Security


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