Zain Telecom’s $30bn valuation looks rich 9 Sep 2009 A group of Indian and Malaysian investors will pay $14bn for 46% of the Kuwaitbased telecom operator. Even with exposure to growth markets in Africa, the multiple is excessive compared to what Zain s recent suitor Vivendi is looking to pay for roughly similar assets in Brazil.
Ebay’s Skype sale eliminates vexing distraction 1 Sep 2009 Its purchase of the internet telecom firm was a strategic mistake from the start. Selling 65% of it at a betterthanexpected $2.75bn valuation frees the online auction company to focus on more important matters such as what to do with Paypal and its cashrich balance sheet.
Silly season dash for stock trash turns absurd 26 Aug 2009 The biggest winners in the recent US stock rally have been shares of shaky companies. The rationale is that firms like Fannie Mae and Citi offer geared bets on economic recovery. This dubious idea has now become farce.
Branson exits US mobile venture with a whimper 28 Jul 2009 The entrepreneur is selling Virgin Mobile to Sprint at 37% of its IPO price a mediocre result. Meanwhile, Abu Dhabi is ponying up money for his loopy spaceship venture and his Aussie airline plans a rights issue. Investors seem enthusiastic, but Branson hasn't always delivered.
Ericsson looks smart to lock up Nortel assets 28 Jul 2009 A decade ago, the Swedish telecom group and Finnish rival Nokia were the biggest opponents of the wireless CDMA telecom standard. So why did Ericsson trump Nokia to buy Nortel s declining CDMA business? Turns out, controlling the past may be a way to control the future.
Vodafone hangs on in there 24 Jul 2009 The mobile giant s organic revenue fell 2% in the first quarter. But that s not bad in a midst of a recession. With a low valuation, good cash generation and a 6.5% dividend yield, the shares have room to recover further.
Great company curse stalks Nokia 17 Jul 2009 Apple and other smaller rivals are running rings around the Finnish giant in the smartphone sector. Nokia recovered from similar design lags when the fastchanging, cyclical handset market was growing. This time it will be harder to catch up because sales have plateaued.
US mobile crackdown promises iPhones for all 7 Jul 2009 That could be one result if antitrust investigations eliminate deals that restrict devices such as Apple s to one network. Mobile phone makers with hit products won t be happy. But the dominant network operators, Verizon Wireless and AT&T, have more to fear.
Downturn could spur overdue UK mobile merger 29 Jun 2009 Deutsche Telekom s subscale TMobile UK unit is on the block and has caught Vodafone s eye. For around £3bn, Vodafone could become the clear market leader if the regulator goes along. But its rivals would also benefit. Few players would mean higher profits.
Vodafone moves to media mecca London 24 Jun 2009 The mobile giant is moving its HQ from the English provinces to the capital. CEO Vittorio Colao wants to be nearer big clients and shareholders. But moving to buzzy London also reflects a vision of Vodafone as a trendy new media company, and not just a pure telecoms operator.
Bharti-MTN advisory mandates come with strings 23 Jun 2009 The possible merger of the emergingmarkets telecoms groups will be a big test of M&A advisers appetite for leaguetable credit. Bharti wants advisers to buy debt for the cash element of the deal. And MTN s business in rogue states makes it a tricky client for Wall Street banks.
Blackberry envy fades with financial crisis 19 Jun 2009 During the boom it was cool to be an investment banker or just look like one. A shiny new gadget from Research in Motion was the accoutrement of choice for wannabe financial engineers. RIM s latest numbers suggest that may be changing.
Landline phone decline threatens telecom groups 9 Jun 2009 The abandonment of traditional phones in favour of mobiles is accelerating. US operators could lose more than 8m landlines this year. Wireless divisions won t save telecom companies from margin compression. But those that don t offer mobile service could be in real trouble.
RH Donnelley bankruptcy shows it’s not dead yet 29 May 2009 By some measures, the US yellow pages group is in less bad shape than others dependent on local advertising that are clinging onto business as usual, like newspaper operator McClatchy. The difference may be that a debt restructuring might actually keep Donnelley alive.
Vodafone success could pave way for Bharti-MTN 27 May 2009 The UK telecoms group recently won control of its South African joint venture. The precedent will make it hard for regulators to stop India s Bharti taking effective control of market leader MTN. Ironically, Vodafone s victory could help unite two of its largest rivals.
Bharti tries to get MTN on the cheap 26 May 2009 The proposed cashandshares swap between the Indian and South African telecoms groups is fearfully complex. But, on the basis of information so far released, it would give Bharti effective control in exchange for only a modest premium for MTN shareholders.
Risks to Vodafone growth story are priced in 19 May 2009 Results from the world s largest mobile operator show recessionary scars, with £5.9bn of writedowns scattered across its empire. There could be more slips. But Vodafone s share price gives little credit to its emergingmarkets growth prospects and scope for costcutting.
BT kitchen-sinks one of its problems 14 May 2009 The British telco reckons a £1.3bn charge on Global Services will be the last. BT will restructure the sick unit. It's also mulling a faster rollout of fibre and will pay a shrunken dividend. But the pension review isn t finished; the outcome could yet spook investors.
Carphone Warehouse feasts on Tiscali scraps 8 May 2009 The British broadband operator has agreed to buy most of its Italian rival for £255m in a firesale, a year after Tiscali was put on the block. Founder Renato Soru gets nothing and Tiscali s lenders are left to fight over the remains. Carphone s patience has won it a bargain.
Telecom equipment makers move to razor-blade model 4 May 2009 Mobile phone saturation is leading to increasing pressure on network operators. For equipment makers, this is both a threat and an opportunity. Prices are falling, but new businesses are opening up. Operators are looking for suppliers like Ericsson to manage their networks.