Seat PG CEO sees consolidation

By Mathias Wildt

PARIS (Reuters) - Italian yellow-pages publisher Seat Pagine Gialle PG.MI expects the European directory service industry to consolidate as it becomes increasingly driven by technology, Chief Executive Luca Majocchi said.

"Over the next five years we'll see the development of pan-European players," Majocchi said at the Reuters Global Technology, Media and Telecoms Summit in Paris on Wednesday.

Synergies were limited when directories were only printed, but technology now allows users to access the same data through new products such as mobile phones and satellite navigators, making cross-border deals more likely, Majocchi said.

"Consolidation at the European level will become more and more rational from an industrial point of view," Majocchi said.

Seat publishes directories in Italy and Britain and has invested heavily in directory assistance numbers in Italy, France, Germany and Spain that the public can call, for a fee, to find phone numbers or business listings.

Britain's Yell Group PLC (YELL.L: Quote, Profile, Research, Stock Buzz), France's Pages Jaunes (PAJ.PA: Quote, Profile, Research, Stock Buzz) and Sweden's Eniro (ENRO.ST: Quote, Profile, Research, Stock Buzz) are all quoted European peers of Seat.

"Any large one would be a good fit (for Seat)," Majocchi said, without saying whether he saw Seat as a buyer or as a target for others. He added that he was interested only in deals with firms in countries that had more than 30 million people.

Seat has set aside 200 million to 300 million euros ($408 million) for acquisitions of smaller companies over the next three years, Majocchi said. The company is "screening targets" outside Italy, particularly in Turkey, India and China, he said.  Continued...