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.
BCE buyout needn’t be carbon copy of Clear Channel 15 May 2008 The C$52bn telecom buyout is being financed by the same banks that just renegotiated their Clear Channel commitments. But BCE is bigger, has an odd equity structure, and presents potentially different legal considerations. The deals may not follow the same path.
Etisalat could have edge in MTN fight 13 May 2008 The UAE s dominant telecoms operator is mulling a $40bn bid for its South African rival, which is currently in talks with India s Bharti Airtel. Any competitor should be wary. Etisalat has a strong balance sheet and a reputation for paying high prices.
Branson’s efforts to take on America fizzle 12 May 2008 Like many UK imports, the bearded billionaire s attempts to crack the US market have been highly hyped and subsequently underwhelming. His mobile phone venture is the latest damp squib.
Will Best Buy go all the way with Carphone Warehouse? 8 May 2008 The US electronics seller is entering a $2.1bn jointventure with the UK retail chain, in which Carphone is selling half its business on the cheap. But given Best Buy s past JVs, this could be the prelude to a full purchase of Carphone s retail arm.
Bharti-MTN deal will take some hammering out 7 May 2008 An $80bn mobile tie up between the Indian and South African operators looks easy on paper. Yet there are plenty of stumbling blocks. An Indian billionaire, a sovereign wealth fund, and the politics of black economic empowerment will make negotiations tricky.
Sprint starts taking itself apart 7 May 2008 The troubled US mobile phone operator's decision to inject its Wimax business into wireless broadband outfit Clearwire is a sensible step. The next logical moves dismantling its failed purchase of Nextel or selling itself are more difficult and less certain to create value.
StanChart benefits as M&A rises in the east 6 May 2008 The Asiacentric UK bank has landed a role on a potential $80bn tieup between India s Bharti Airtel and South Africa s MTN. With M&A activity decamping to emerging markets, the likes of StanChart have a prime opportunity to snatch juicy mandates from their bulgebracket rivals.
Bharti aims at $80bn emerging market mobile giant 6 May 2008 The Indian mobile operator is reportedly eyeing a $37bn bid for South Africa s MTN. There s industrial logic to a deal and Bharti s hot share price gives it a strong currency. But there could be a fight for MTN's plum spots in fastgrowing African markets.
DT would have work cut out with Sprint deal 5 May 2008 The German telecoms operator is said to be eyeing the troubled US wireless rival. At E27bn enterprise value, a purchase looks affordable, but it won't be easy to pull off. If the political minefields can be dodged, there are still huge technical and commercial challenges.
Nordic telecom champion would create little value 29 Apr 2008 A mooted deal between Norway s Telenor and SwedishFinnish rival TeliaSonera might boost regional prestige, but the synergies aren t compelling. Government interference blocked a previous merger attempt. Intrusive authorities could trip this one up too.
Ericsson’s good news is relative 25 Apr 2008 Investors had low hopes for the Swedish telecom equipment maker s Q1. Ericsson beat expectations, and the shares have jumped. Yet they re still worth half what they were before last year s profitwarning, and there are plenty of reasons for caution.
DT shouldn’t be allowed to control OTE on the cheap 24 Apr 2008 The German telecom group is trying to cut a cosy deal with the Greek government that would allow it to take control of the former Hellenic monopoly with just 25% of shares. Once again political meddling threatens to deprive OTE minorities of the full value of their shares.
Carphone learns cost of currency speculation 18 Apr 2008 Almost half of the UK telecoms retailer s debt is in Swiss francs. The company says it s a hedge, but it has almost no earning assets in Switzerland. So when the pound fell, Carphone s debt ballooned. It should admit this is a speculation gone awry.
Tiscali bidders face expensive fight 16 Apr 2008 After being put up for sale, the European broadband operator is already trading well above its fair value. Tiscali has plenty to offer. But with founder Renato Soru understood to be looking for a further 55% premium, Tiscali might forever be the jilted bride.
France Telecom’s Telia plans smack of empire building 16 Apr 2008 The French telecoms group s plans to merge with its Scandinavian peer look more about securing a place at Europe s top table than delivering shareholder value. FT would get the lion's share of the group, and get more into emerging markets. But the deal has few obvious synergies.
Carphone gets a Dunstone discount 15 Apr 2008 Operationally, the UK telecom retailer's trading statement was fine. What sent the shares crashing 11% and down 34% this year was a surprise surge in net debt as a result of currency movements. Chief executive Dunstone has some explaining to do.
BT’s new boss will have his work cut out 8 Apr 2008 Ben Verwaayen did a good job reviving one of the biggest victims of the tech collapse. But the last few months have exposed cracks in his strategy. Verwaayen s successor, Ian Livingston, has plenty to do to close BT s discount to peers.
Where are the missing iPhones? 4 Apr 2008 Apple sold 3.6m iPhones last year but its partners only registered 2.3m customers. Meanwhile, US retail stores are running short of the hit handsets. Apple could be running down stocks ready for a new model. But equally, free trade also known as smuggling could be to blame.