Cisco’s sprawl brings it to a crawl 11 Nov 2010 The networking giant shocked Wall Street with its tepid revenue forecast sending shares plunging in late trading. This looks like an abrupt overreaction. But fears that Cisco has become too sprawling for its own good are well founded.
Murdoch will have to work to get his way in the UK 4 Nov 2010 Vince Cable has ordered an inquiry into whether Murdochcontrolled News Corp's 12.3 bln pound takeover of BSkyB is against the public interest. The Liberal Democrat business secretary has good reason to demand a probe. But an outright block looks unlikely though not impossible.
Clearwire can’t easily escape trouble hot spot 2 Nov 2010 Craig McCaw achieved a milestone by launching 4G in New York this week. Still, the company is burning cash and its WiMax standard looks like an alsoran. Selling spectrum should help but its awkward characteristics could mar the auction. Clearwire s future remains fuzzy.
Is Carlyle dialing up more telecom losses? 25 Oct 2010 The private equity firm s investments in Hawaiian Telcom and Japan s Willcom were disasters. Now it s bidding $3 bln for CommScope. This time the target's ability to handle debt, combined with bright prospects for its cellphone tower equipment business, makes it a better bet.
Telenor right to doubt Vimpelcom/Orascom deal 14 Oct 2010 The Norwegian telco, which owns 40 pct of Vimpelcom, is cooling fast on its merger with Naguib Sawiris' assets. Its reaction to the pricey and dilutive deal was already lukewarm. But uncertainty about Algeria's Djezzy will reopen old wounds with Vimpelcom's Russian owners.
Microsoft’s phones look good, but not good enough 11 Oct 2010 The software giant hasn t been able to crack the smartphone market despite several attempts. It holds fifth place. Handsets powered by its latest efforts look appealing. But that s not sufficient given the huge lead Apple and Google maintain, particularly in apps.
Apple to score more than Verizon in iPhone deal 6 Oct 2010 The U.S. carrier finally looks like it will get to sell a new version of the hot handset early next year. While Verizon will snatch dissatisfied customers from rival AT&T, it may find good returns harder to find. Apple, on the other hand, won t face this problem.
Vimpelcom faces heavy weather with Orascom 5 Oct 2010 The Russian mobile operator is paying up for Weather, the holding company of Egyptian tycoon Naguib Sawiris. The $6.6 billion price tag looks inflated given the high debt of Italian operator Wind and the risks weighing on Algerian business Djezzy. Investors are right to worry.
Etisalat offer calls time on Zain’s independence 29 Sep 2010 Kuwaiti telco Zain used to want to be a global champion. But it recently sold its African unit to India's Bharti and now UAE rival Etisalat is offering at least $10 bln for what's left. With a big investor keen to sell, Zain looks set to be consolidated, not a consolidator.
SFR deal could help solve a double discount 27 Sep 2010 Vivendi and Vodafone both suffer conglomerate discounts. If the French group buys out its UK partner's $14 bln stake in their SFR mobile venture, both sets of investors should benefit. It's time to talk now that Vivendi has received a chunk of cash from selling out of NBC.
Vodafone chair critical for providing air cover 20 Sep 2010 The mobile operator's CEO says he doesn't want to be a forced seller of assets like its stake in Verizon Wireless. But to stick the course, he'll need a strong chairman to replace John Bond, who has been damaged by the row over Vodafone's previous M&A mania.
Swiss telecom sale offers escape for TDC owners 17 Sep 2010 Selling Sunrise to CVC gives the Danish telco a clean exit. But TDC's private equity owners should resist the temptation to pocket the $3.25 billion proceeds. If they want to reduce their stake in the business this year, paying down debt would be a better plan.
Svyazinvest row is fresh blot on Russian business 17 Sep 2010 The Russian telco is a hotbed of conflict and resignations. Behind the public bickering lies what looks like battle for management control of the state's growing telecoms empire, which raises concerns about links between state and private interests.
Vimpelcom/Orascom merger talk spooks investors 10 Sep 2010 It would be one of the boldest international expansions by a Russian company. Yet while Vimpelcom's big push overseas is logical, talks over a tieup with Egypt's Orascom have hammered the Russian telco's share price. The deal looks dubious unless thorny issues are clarified.
Vodafone discount won’t be erased by China exit 8 Sep 2010 The telecoms giant's sale of a 3.2 pct stake in China Mobile for $6.6 bln is good housekeeping, and there's more tidying to do in its sprawling portfolio. But Vodafone's sumoftheparts discount will persist until it finds a way of unlocking value from Verizon Wireless.
Bid talk is welcome boost for C&W Worldwide shares 6 Sep 2010 Takeover talk is providing some muchneeded support for the UK telecoms group's depressed shares. C&W has hardly impressed since its demerger earlier this year, issuing a profit warning in July. Shareholders must hope a bid from AT&T or SingTel becomes more than just a rumour.
When should investors sell their Apple stock? 6 Sep 2010 Not yet. The group's push overseas and into the business market not to mention new gadgets means growth should continue for some time. At some point, though, it will inevitably slow. Here are a few possible warnings signs for when that day may arrive.
Infineon deal sticks closer to Intel’s knitting 30 Aug 2010 The $1.4 bln purchase of Infineon's mobile unit is a far cry from Intel's expensive gamble on security software maker McAfee. The business hews closely to Intel's core competencies in semiconductors, and gives the company a better shot at catching up to rivals in mobile devices.
BlackBerry ban looks like tactical move by Gulf 2 Aug 2010 Research In Motion's smartphone is the first choice for the global banking community. The UAE restrictions on it are a big negative for business. Both sides have plenty to lose, and Apple's rival iPhone is gaining ground. UAE's move looks ballsy. But a compromise seems likely.
Telcos stronger financially than strategically 29 Jul 2010 Operators are showing improving trends with Telefonica, France Telecom and BT all beating expectations. The sector is showing welcome discipline, with an increasing number of telcos making threeyear dividend commitments. But strategic uncertainties will continue to weigh.