Motorola split won’t solve handset ills 26 Mar 2008 The tech company will spin off its troubled handset group. A sumoftheparts implies the unit is a drag on the value of Motorola's other businesses, so the stock could pop. But spinning off the handset unit won t cure its main problem the failure to design a new hit product.
Investors are exaggerating Tele Atlas, Navteq risks 26 Mar 2008 The two digital mapmakers are trading at big discounts to their proposed takeover prices because both face tough antitrust scrutiny. But regulators will probably clear TomTom and Nokia to complete the deals.
Telecom Italia’s former kingmaker makes sorry exit 13 Mar 2008 Hopa has been forced out of the telecoms group. Its bank, RBS, sold Hopa s last 3.7% stake to pay a margin call. That s a big comedown for a holding company, formerly controlled by Emilio Gnutti, a financier who engineered two TI coups. Not that other TI investors mind.
Bernabe pulls punchbowl from Telecom Italia shareholders 7 Mar 2008 The Italian telecoms group s new boss has drawn a thick line under the Tronchetti era. Hemmed in by debt and tepid growth, he has cut TI s generous dividend by 40%. That has sent the shares tumbling not that TI s biggest investor, Spain s Telefonica, may mind as much as others.
Pluthero’s plan to speed up C&W backfires 4 Mar 2008 Investors don t think much of the lofty UK growth targets set by the telecoms group s boss. Its shares fell 10%. C&W s history of failing to live up to promises may be one reason for the fallout. Pluthero s potential exit before the going gets really tough may be another.
Sprint’s $30bn writedown could presage cash crunch 28 Feb 2008 The phone company s customer losses have entered warp speed. It thinks 1.2m will flee in the first quarter or more than all of last year. More worryingly Sprint s drawdown of $2.5bn of revolving debt suggests fear that a liquidity crisis could arise.
Tiscali’s days are numbered 27 Feb 2008 The European broadband operator disappointed investors by waving off its chief executive Tommaso Pompei without having a sale lined up. Tiscali s existing strategic plan is ambitious, and financially the group is stretched. If it wants to create value, a sale looks inevitable.
Bain’s failed 3Com deal reflects political tone-deafness 20 Feb 2008 The private equity firm teamed up with a Chinese tech group founded by a former general in the Chinese army to buy the US company. 3Com s technology helps safeguard computer networks. Bain should have expected the securityobsessed US government to object.
Comcast heads off shareholder gunfight 14 Feb 2008 The US cable group will channel a chunk of its free cash to restore its dividend and buy back stock, signalling it s not going shopping. It also rectified the most medieval aspects of its governance. Comcast did the right thing in the nick of time.
Is Wall Street too reliant on the Blackberry? 12 Feb 2008 The gadget s most loyal customers were asking that question on Monday, after handhelds across North America went black for a few hours. If operator RIM can t assure perfect service, some of its most critical and least pricesensitive users may rethink their custom.
BT counts cost of broadband open house party 7 Feb 2008 The UK telecoms group is suffering after regulators forced it to let competitors in on its network. Revenues at its wholesale division fell 11% in Q3. That s put BT deeper in the mire with investors. No wonder European rivals want to keep a firm grip on their own networks.
Sprint may back away from Wimax lottery 28 Jan 2008 The telecom group s acquisition of rival Nextel was a disaster. New boss Daniel Hess may ease a turnaround by injecting Sprint s wireless broadband assets into partner Clearwire. This would be prudent, but it precludes a jackpot payoff for Sprint.
Nokia storms ahead of Motorola – for now 24 Jan 2008 The Finnish phone giant s results sparkled, while its US competitor bombed. Handset selection explains most, but not all of the difference. Motorola sells 53% of its phones in America, while Nokia sells few. But if US troubles infect the global economy, Nokia will be vulnerable.
How aggressive should telcos be? 10 Jan 2008 That s the question behind the struggle for control over Finland s Elisa. Icelandic intruder Novator wants the company to gear up and plan for bold overseas growth. Management is cautious. Paying out cash makes sense, but so does being wary with foreign adventures.
Vivendi’s surprise rights issue points to more deal-making 20 Dec 2007 The littleleveraged French telecomandmedia group could have taken on more debt to finance its E4.4bn bid for telecom upstart Neuf Cegetel. It may want to keep its powder dry if an opportunity arises to buy out other minority shareholders.
Vivendi gets serious in broadband 18 Dec 2007 The French telecom and media conglomerate is in talks to buy Groupe Louis Dreyfus's 30% stake in telecom operator Neuf Cegetel, of which it already owns 40%, for E2.5bn. As tripleplay broadband becomes ubiquitous, the move may be kicking off the industry s consolidation.
20:20 could be first sign of LBO troubles 17 Dec 2007 Critics have long warned of the dangers of private equity putting too much leverage on the wrong sort of company particularly if you overpay. Doughty Hanson s 20:20 Mobile deal looks like a good example. It could have company, even if the UK economy doesn t soften.
Telecoms’ hefty fibre investments paying off 13 Dec 2007 Investors are starting to realise telecoms' multibillion dollar investments in highspeed fibre optic networks might be a good idea. Verizon and AT&T, which are furthest along in their rollouts, are pummelling their cable competition. It s about to get far worse.
Motorola’s new chief has luxury of low expectations 30 Nov 2007 Its top job may look like a poisoned chalice. Sales are declining, its handsets look tired and Carl Icahn is hovering. But the post may be more palatable than it appears. Motorola s balance sheet is strong. And the group has a long history of unveiling surprise hits.
Vodafone rides tailwinds for all they’re worth 13 Nov 2007 The mobile group returned to H1 profit in style, raising fullyear guidance in the process. CEO Arun Sarin doesn't deserve all the credit. There were some good oneoffs, and sectorwide trends helped. Even so, the results will put him in investors' good books.