Telecommunications

There’s hope beyond moaning for European telcos

3 Mar 2023

Orange and Deutsche Telekom asked for US Big Tech to pay for a “fair share” of network investment at the sector’s annual Barcelona bunfight. Even if it helps, it won’t be a quick fix. At least there’s hope the EU will allow more mergers, and new technology could help cut costs.

EU’s Big Tech shakedown heads down new blind alley

1 Mar 2023

The European Commission’s effort to squeeze money out of the likes of Alphabet and Apple now aims at telecommunications, with a bid to make Silicon Valley pay for the bloc’s broadband infrastructure. Regulators have pooh-poohed the idea since 2012. It hasn’t improved with age.

Airtel would be a complex saviour for Paytm

28 Feb 2023

Any investment from telecoms magnate Sunil Bharti Mittal would be a timely sign of confidence in the loss-making fintech darling as its big Chinese investors exit. Tycoons and banks are not happy bedfellows in India Inc, but deal talk at least shifts the debate to Paytm’s value.

Telecom Italia breakup can please all its masters

15 Feb 2023

The sickly telco needs to cut its 25.4 bln euro debt pile. Selling its fixed-line grid to KKR offers a fix, provided the government gets a stake in the strategic asset. For major investor Vivendi, the upside would be a chance to sell Telecom Italia’s revamped service business.

Malone’s Vodafone bet may take years to pay off

14 Feb 2023

Liberty Global bought 4.9% of the telco conglomerate, joining industry rivals Abu Dhabi’s e& and Xavier Niel. Chairman John Malone knows the $31 bln company well and may hope to influence any breakup. A 2015 investment in UK broadcaster ITV shows he’s willing to sit and wait.

KKR can limit the pain of Elliott’s telco blitz

13 Feb 2023

The activist is disrupting the buyout group’s bid for German phone masts firm Vantage Towers. With a 5.6% stake, Paul Singer’s fund is expected to block the delisting until it gets a big payout. But unlike previous Elliott campaigns, KKR has various ways to insulate itself.

Capital Calls: Tyson Foods, Electric cars

6 Feb 2023

Concise views on global finance: Shares in the meat producer fell nearly 6% after it revealed less-than-savory results; Faraday Future and Canoo are raising capital amid a fresh stock market rally for the industry.

KKR tries its luck again with Telecom Italia bid

2 Feb 2023

After two failed attempts, the buyout firm is seeking control of the telco’s network, valued at 20 bln euros. A sale would solve the group’s persistent debt headache. To overcome resistance from major shareholder Vivendi, KKR will need backing from the government in Rome.

John Malone prepares for a victory lap

1 Feb 2023

The mogul’s labyrinthine Liberty Media is preparing another spinoff and fresh tracking stocks. Such financial razzmatazz hasn’t always benefited investors. In this case, isolating the Atlanta Braves and Formula One should generate value as the 81-year-old rides into the sunset.

Capital Calls: Cryptocurrency, Chelsea FC

1 Feb 2023

Concise views on global finance: Britain delivers a blow to digital assets by aiming to regulate them the same way as traditional ones, while the UK soccer team’s new owner Todd Boehly splashes the cash.

Capital Calls: Juul’s extra puff

25 Jan 2023

Concise views on global finance: Three large tobacco companies may be interested in some sort of deal with the e-cigarette producer, whose $37 bln value has gone up in smoke.

AT&T’s fiber diet should help mitigate M&A bloat

25 Jan 2023

The telecom titan booked a $25 bln charge on creaky landlines as it keeps paying the price for the disastrous DirecTV and Warner Media deals. These struggles have John Stankey seeking fresh ways to grow. A venture with BlackRock to build high-speed networks is a prudent approach.

Capital Calls: VC bunks up

24 Jan 2023

Concise views on global finance: Josh Kushner’s deal to sell a stake to investors, including KKR’s Henry Kravis, values his firm at $5.3 billion just as startups are at an inflection point. 

Vodafone stake-builder sends fuzzy breakup signal

24 Jan 2023

UAE telecoms group e&’s 12% holding in its $31 bln UK peer makes it seem like a full bid or a breakup lies just around the corner. But the $61 bln Middle East stake-builder doesn’t seem that keen. And most of Vodafone’s many locales look hard to split off anyway.

Capital Calls: “Angry Birds”, Cellnex

20 Jan 2023

Concise views on global finance: Playtika’s offer for “Angry Birds” maker Rovio may be just the beginning of a takeover saga; a mooted bid for phone tower operator Cellnex comes in the middle of a strategic turnaround.

Vodafone dials up India’s inefficient debt market

17 Jan 2023

Its top creditor, the government, is dithering on restructuring the telecom operator’s $27 bln of borrowings. A sustainable fix would leave New Delhi owning the company. What politicians do next will determine how deep India’s fight against bad debt goes.

India’s Vodafone stress test may have ugly results

6 Jan 2023

The telecom operator needs cash to keep up with rivals. But top shareholders are reluctant to infuse much, and the government’s promise to swap some of Vodafone’s $27 bln net debt for equity hasn’t materialised. No one looks good and a long standoff will end up in a duopoly.

Sky spinoff is Comcast’s least-bad option

3 Jan 2023

The U.S. cable giant spent $40 bln on Rupert Murdoch’s European pay-TV provider in 2018. Now consumers are under duress and it’s probably worth less than half that sum. Though boss Brian Roberts is a reluctant seller, listing Sky will shortcut challenges on the horizon.

Vodafone CEO exit limits room for quick turnaround

5 Dec 2022

Nick Read is leaving the 25 billion pound telecom group after just four years. Finding a permanent successor may take time, and the board’s focus meanwhile is on completing two deals and improving the group’s weak performance. Bold moves like a breakup may take a back seat.

Taiwan’s Foxconn slowly checks into iPhone detox

1 Dec 2022

The $45 bln electronics maker’s relationship with Apple was a money-spinner. Yet even before protests disrupted Chinese production lines in November, the latter was hedging its dependence on Foxconn, denting profitability. Withdrawal will be gradual, painful and healthy.