If a few of our FTSE 100 shares keep as low-cost as they search for for much longer, I can see the potential of a couple of takeover makes an attempt in 2025.

Potential suitors would possibly even attempt to get in earlier than rates of interest come down a lot additional and shares begin attracting extra consideration once more.

Wants fixing up

In Might 2023, Vodafone (LSE: VOD) CEO Margherita Della Valle famously mentioned: “Our efficiency has not been ok. To persistently ship, Vodafone should change.“

The difficulty is, altering a telecoms big the scale of Vodafone was by no means going to be an in a single day job. To date, we’re seeing value financial savings, enhancements in effectivity, and the beginnings of higher focus.

Slashing the uncovered and unaffordable dividend was begin. However then I’m a bit perlexed by the latest share buyback.

Might it’s that the corporate is making an attempt to provide the share price a lift and assist fend off attainable predator curiosity?

Not a purchase for me

Proper now, for me, I’m nonetheless not seeing Vodafone shares as a sexy prospect. So I’m not going to assist push the price up.

Saying that, forecasts are bullish about Vodafone’s earnings within the subsequent few years. They see the price-to-earnings (P/E) ratio coming down to beneath 8.5 by 2027. And analysts principally have Vodafone down as a purchase.

Oh, and the rebased dividend may nonetheless yield 7% primarily based on this yr’s forecasts. I may simply be incorrect, and daring traders would possibly do effectively to think about Vodafone for a long-term dividend funding. Except somebody buys it out first.

The approval for Vodafone’s merger with Three would possibly set regulators towards such a transfer, thoughts.

Retail consolidation

I’ve seen one or two hints from business observers that discounter B&M European Worth (LSE: BME) is perhaps up for grabs as retail weak point continues.

The corporate, which owns B&M shops within the UK and France and the UK’s Heron chain, posted falling like-for-like gross sales once more on this yr’s Q2

The 1.9% decline remains to be an enchancment on Q1’s 5.1% fall, nonetheless. And I ponder if it’d carry would-be consumers sniffing round.

Hmm, a falling P/E primarily based on forecast earnings progress, with analysts anticipating this yr’s 3.7% dividend yield to rise, imply I ought to in all probability take a more in-depth look myself.

Easing the squeeze

One factor I’m actually undecided about is what total impact any fall in inflation and rates of interest in 2025 would possibly carry.

On the one hand, it may give the entire retail sector a much-needed enhance. So many are consumers have to observe their pockets for the time being. However then, would possibly it additionally erode the benefit the low cost retailers take pleasure in? I’m not so certain, as I recall Lidl and Aldi rising market share even earlier than the inflation disaster.

I’m unlikely to purchase B&M myself, however that’s actually simply because low cost retail isn’t one thing I spend money on. And I’d by no means purchase something simply on the hopes of a takeover.

However I feel B&M may come good in 2025, and I’ll be awaiting bid approaches.