EU Favors Digi to Win Assets in Orange-Masmovil Deal (1)

Digi Communications NV has emerged as the European Union’s favored firm to buy assets that Orange SA and Masmovil Ibercom SA are likely to be required to sell as part of their €18.6 billion ($19.6 billion) deal.

Avatel Telecom SL is also being considered, people familiar with the matter said, asking not to be identified because the deliberations are still private.

Orange and Masmovil are currently in talks with the European Commission to seek approval to combine their Spanish operations, a move that would reduce the number of major telecommunications companies to three from four. To allay competition concerns, ...