UBS reiterates its sell recommendation on the share and leaves its target price unchanged at 115 pence.

The analyst highlights the implications of the triennial pension review.

' Actuarial deficit broadly in line with forecasts, at £3.7 billion. Pension deficits are unchanged and remain high at £780 million per annum. Pension levels may limit potential mergers and acquisitions' says UBS.

The analyst was expecting better financial results at group level, but was targeting higher losses for Openreach.

' Consumer broadband prices may have been better than expected, but Openreach's losses are still significant' says UBS.

' The share price is very high, but we mustn't forget that the TalkTalk merger and acquisition risk is being overlooked' adds the analyst firm.

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