Vodafone’s UK merger plan has cost-of-living catch 3 Oct 2022 The $32 bln telecoms group and Hong Kong’s CK Hutchison are in talks to merge their British operations. A deal could unlock cost savings, but shareholders so far seem unenthused. It may be harder for watchdogs to accept lower competition while customers reel from higher prices.
Corporate lemons will vex Italy’s next government 22 Sep 2022 Premier Mario Draghi couldn’t sell bailed-out Monte Paschi nor halt a share slide at indebted Telecom Italia. If right-wing Giorgia Meloni wins Sunday’s election, she will have to untangle such company knots. Her zeal for patriotic solutions may prove costly and inefficient.
Vodafone’s new activist is mixed investor blessing 21 Sep 2022 French tycoon Xavier Niel bought 2.5% of the $34 bln telecoms company. That will cheer fellow shareholders, like Cevian Capital, who are pushing CEO Nick Read to simplify the group. Yet the risk is that Niel is more interested in getting hold of its Italian assets on the cheap.
Capital Calls: Amazon’s green coupons, Peloton 25 Aug 2022 Concise views on global finance: The internet giant’s promise to try green hydrogen technology is valuable to firms like Plug Power, so Amazon demands a taste. Investors in the exercise-bike maker suffer a rapid descent after dismal fourth-quarter earnings.
Vendor is main winner in Brookfield’s towers coup 14 Jul 2022 The Canadian group and DigitalBridge are buying Deutsche Telekom’s masts in a 17.5 bln euro deal. Their ability to pay in cash helped beat bidders like Cellnex. Infrastructure funds have over $300 bln to invest, giving sellers scope to demand a high price even in tricky markets.
Telecom Italia breakup opens new M&A lines 7 Jul 2022 The struggling former state monopoly is saddled with 23 bln euros of net debt. Selling its prized fixed-line network would eliminate most of that, slashing leverage for the services company left behind. For investors, the hope is that Telecom Italia’s rump also comes into play.
Mukesh Ambani lays groundwork to divide and rule 29 Jun 2022 The tycoon’s son Akash is taking over the telecom unit as a first step in transferring the $220 bln empire to his three children. Spinoffs will probably follow. Ensuring family interests align should help avoid a repeat of his own epic sibling feud and preserve the group’s power.
Italian telecom network Plan B will be hurdle race 30 May 2022 Telecom Italia and a state-controlled rival want to merge their broadband networks. For KKR, which owns a stake in the $6 bln incumbent’s last-mile unit, it’s a consolation after a failed takeover. Yet any agreement will need to win over investors, bondholders, and regulators.
Capital Calls: Twitter, Peloton 18 May 2022 Concise views on global finance: The social media company’s directors have too much at stake to renegotiate a deal with Musk; and Apollo and Blackstone’s interest in the $5 bln virtual workout company could benefit more if it fails rather than succeeds.
Capital Calls: Vodafone’s new investor 16 May 2022 Concise views on global finance: The Gulf-based telecom operator formerly known as Etisalat has bought 10% of the UK operator. Its promise not to push for change may only last so long.
Xiaomi fight puts China Inc on India red alert 13 May 2022 The country’s tax and financial agencies have tried to block some $1.2 bln of the smartphone maker’s funds. New Delhi engaged Vodafone, Cairn and others in similar battles but its testy relations with Beijing up the ante. Xiaomi and Chinese peers in India face a slow decline.
Vodafone’s deal zeal is a risk factor 12 May 2022 The telecoms group may combine its UK business with smaller rival Three, owned by Hong Kong’s CK Hutchison. Its 39 bln pound debt pile makes a joint venture more likely than an outright purchase. CEO Nick Read’s eagerness to hook up means he may not secure the best deal possible.
China’s ZTE answers the call on Huawei’s crisis 3 May 2022 Fresh off five years of U.S. probation, the $16 bln telecom-equipment maker is growing sales and improving margins as American sanctions hurt its larger rival. An expanding 5G rollout leaves additional market share up for grabs. Its discounted valuation is poised to be dialed up.
Arm IPO bankers will struggle to tell growth story 29 Apr 2022 Owner SoftBank is picking advisers for what CEO Masayoshi Son calls the most significant float in the chip industry’s history. A boost from 5G phones and data-centre demand may lure growth-hungry investors. But that won’t be enough to justify a mooted $60 bln valuation.
KKR red card is a Telecom Italia own goal 8 Apr 2022 After months of fumbling, the Italian operator hung up on the U.S. fund’s 10.8 bln euro takeover approach. Stiff opposition in Italy had dampened KKR’s interest. For CEO Pietro Labriola, revamping the hard-pressed group under intense market scrutiny will be twice as hard.
Ericsson’s governance mess stretches beyond Iraq 30 Mar 2022 Investors rebuked CEO Börje Ekholm for not disclosing possible payments to Islamic State by stripping him of legal protections. The telecoms-kit maker kept voting details quiet, and its dual-class share structure means Ekholm looks safe. Investors have more reason to steer clear.
CVC throws Telecom Italia a tricky lifeline 29 Mar 2022 The buyout firm wants to buy 49% of the troubled telco’s corporate business, which it values at 6 bln euros. A deal would help CEO Pietro Labriola trim debt. But it could complicate KKR’s push to take the group private. More crossed wires is the last thing shareholders need.
Capital Calls: Telecom Italia takes KKR’s call 14 Mar 2022 Concise views on global finance: The Italian telco’s board decides to start formal talks with the buyout firm, four months after it first proposed a 10.8 bln euro takeover.
Spanish telco M&A piles pressure on Vodafone 8 Mar 2022 Orange and KKR-owned MasMovil are in talks over a 19.6 bln euro merger in Spain. The bold move will test EU competition watchdogs’ opposition to consolidation. It also looks like a missed opportunity for the UK telco’s CEO Nick Read. He now needs a deal in Britain or Italy.
Barcelona’s 5G hype is recipe for hyperventilation 4 Mar 2022 Telecoms bosses converged on the Spanish city this week after a two-year hiatus. From robot dogs to holographic compères, the tech-fest painted a utopian view of a wired future. For CEOs like Vodafone’s Nick Read, the difficulty is making it happen while also making money.