Nokia’s Symbian purchase swats Microsoft and Google 24 Jun 2008 The Finnish mobile giant will take control of the biggest smart phone software maker and offer its programs for free on an open source basis. This could make it harder for rival software groups to carve out a profitable niche in mobile.
Canadian court’s ruling keeps BCE on life support 20 Jun 2008 The Supreme Court ruling will allow the buyout of the Canadian giant to stagger on. But in some ways, it still marks the end of an era. The $52bn buyout was announced near the bitter finale of the LBO boom. Deals that big won't be seen again for years.
Tiscali auction looks in trouble 19 Jun 2008 Hot favourite Vodafone is understood to have walked away from the overvalued Italian internet group. The withdrawal of the UKbased mobile operator leaves only a handful of tentative bidders. Amid signs of a broadband slowdown, Tiscali should be lowering its price expectations.
Ambani squeezed in MTN tie-up 13 Jun 2008 The Indian billionaire wants control of its larger South African rival. Politics mean Ambani s Reliance must become a subsidiary of MTN. That would leave Ambani struggling to get more than 37% of MTN low enough to let brother Mukesh accuse Anil of giving away the family silver.
Emerging market woes turn spotlight on Singapore Telecom 10 Jun 2008 After its Indian partner Bharti walked away from South Africa s MTN, SingTel is looking to China for growth. Yet its minority holdings in numerous companies, with no clear path to control, should concern investors. SingTel trades on a premium but may deserve a discount.
Apple’s new iPhone faces high expectations 6 Jun 2008 Steve Jobs is reportedly set to unveil Apple s secondgeneration iPhone next week. Will it capture the electronic zeitgeist yet again? That would require Apple to roll out something truly shiny and new and not just make incremental improvements.
Alltel’s $28bn flip creates winners – and losers 5 Jun 2008 Verizon is getting a good deal and can squeeze $1bn of synergies from the mobile operator. TPG and Goldman made out sweetly in seven months. But their lenders may have reason to grumble, along with Vodafone.
Vodafone caught out by Verizon Wireless-Alltel deal 5 Jun 2008 The mobile operator s US joint venture is splashing out $28bn to buy regional rival Alltel. Yet despite owning 45% of Verizon Wireless, Vodafone gets no say and is forced to watch as its dividend plans go awry. That might not be as bad as it sounds.
Telia rejection kills France Tel’s value hopes 5 Jun 2008 The Scandinavian telecom group has rejected an E30bn takeover proposal from its French counterpart. At the price, value creation is elusive, especially as FT only sees 1% revenue synergies after six years. A bid high enough to please Telia would be even worse.
Alltel’s banks may lose money, but may not care 4 Jun 2008 The US telecom giant was bought by Goldman and TPG for $27.5bn seven months ago. Verizon may now buy it for the same price. This only makes sense if the debt holders still the original underwriters are willing to take a haircut. They may already have.
Mvelaphanda interest in Telkom looks opportunistic 3 Jun 2008 South Africa s incumbent telecom operator has caught the eye of a consortium of investors led by politicianturnedentrepreneur Tokyo Sexwale. While Telkom s fixedline business is in decline, the shares look undervalued. Vodafone could be the ultimate winner.
China’s forced telecoms shakeup may not stir competition 2 Jun 2008 China s government wants to rein in the dominant China Mobile. The shares have fallen in fear that a complex restructuring featuring fixedline operator China Telecom s $15bn expansion into mobile will hurt profits. But China Mobile s position won t be easily eroded.
France Telecom’s Telia obsession is mind-boggling 30 May 2008 The French telecom company has lost E7bn in market cap in a month, after saying it was contemplating a bid for its Scandinavian counterpart. Now it is trying to raise E10bn to finance a deal with few synergies and no industrial logic. Valuedestruction days are far from over.
What next for Sarin? 28 May 2008 Vodafone s outgoing boss will be in hot demand. After five years leading a successful UKbased global telecom operator, the Indianborn, USeducated executive has many options. Something else mobile, or a move into finance look obvious, but he might just do most good in India.
Sarin makes timely Vodafone exit 27 May 2008 Two years ago, few would have believed the mobile operator s chief executive would survive to depart under his own steam, and in glory. Sarin s deals shifted Vodafone s growth to emerging markets. His chosen successor is left a fight to keep that momentum going.
MTN won’t go easily 27 May 2008 The South African telecom operator is in exclusive negotiations with Reliance Communications. Yet if talks with India s Bharti Airtel failed because MTN didn t want to be taken over, it s hard to see why one empirebuilding Indian mobile operator will be better than another.
Canadian court’s BCE upset may someday bite bondholders 22 May 2008 The ruling that bond investors deserve a better deal in the telco s $52bn LBO looks like a big win especially if it derails the buyout. But giving bondholders benefits usually reserved for shareholders means they should share more in the downside, too, if the company defaults.
Time Warner ups pressure on Comcast 21 May 2008 The media group s decision to separate its cable arm with a ton of leverage raises the bar for Comcast. Its shareholders were already clamouring for Comcast s founding Roberts family to improve its capital structure. This gives activists more ammunition.
Cascade financing could help Bharti unlock MTN 20 May 2008 By leveraging MTN up and creating a special acquisition vehicle with SingTel, Sunil Bharti Mittal may be able to control the $43bn South African telecoms group with little of his own capital. Such a scheme could also appease both South African and Indian political sensitivities.
BT’s Verwaayen leaves tough job for his successor 15 May 2008 The outgoing chief executive of the UK telecoms group delivered a decent set of valedictory results. Yet despite a good show in its IT Services division, BT s wholesale revenues and share of net broadband additions continue to decline. New boss Livingston has his work cut out.