Posts tagged 'Vodafone'

Mobile money and the UK aid conundrum

Putting a financial value on aid is tricky. Case in point, Monday’s FT editorial on the UK’s overseas development budget:

The expansion in the budget of the Department for International Development has not been without its critics. Some have questioned what intrinsic merit there is in spending 0.7 per cent of Britain’s output on overseas aid. The target is one that the development lobby has long been attached to… At the same time, there have been worries that Dfid’s £12bn budget is not spent effectively. Read more

Vodazon, and tax: can’t… get… outraged…

Financial maze du jour — can you get tens of billions of pounds in cash through this corporate structure to a big, tax-free investor payout? Start from the bottom, find your way to the top. Read more

Vodamort and the Chamber of Secrets

Today marked the rarest of events: a Vodafone statement that directly references its joint venture partner.

The last time we had a mention of Verizon Communications outside the boilerplate on a Vodafone stock market announcement was back in 2007, when Arun Sarin was bounced (by this blog) into denying the existence of Project Vulture. It seems that Verizon, like Lord Voldemort, shall not be named. Read more

Vodafone-Verizon: a $245bn solution — UPDATE 2

Hello to the City’s new watchdog, the Financial Conduct Authority. It may seem rude to make requests on your first working day but there’s a market rumour on which we would like some clarity. It involves what would be the biggest M&A deal ever, and it’s on your patch. Read more

Vodafone on the slide

Bad news for just about every British pension holder on Tuesday morning as Vodafone shares fell 4.5 per cent following a set of disappointing first half results. Although the interim dividend was raised by seven per cent year-on-year, so shareholders are getting a bit of a sweetener but it’s not enough.

The company also said it would use $1.5bn of its $3.8bn cash dividend from its 45 per cent stake in Verizon Wireless on a share buy-back programme. Read more

Vodafone puts up for CWW

To the tune of 38p a share (the shares closed 2p lower at 32p on Friday):

Ÿ        Vodafone Europe B.V. (“Vodafone”) and Cable & Wireless Worldwide plc (“CWW” or the “Company”) are pleased to announce that they have reached agreement on the terms of a recommended cash offer pursuant to which Vodafone will acquire the entire issued and to be issued ordinary share capital of CWW. It is intended that the Offer will be effected by way of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act. Read more

C&WW&Voda

A major telecom company said it was in the early stages of thinking about euthanising a corporate basket-case on Monday.

Cable & Wireless Worldwide shares were up 28 per cent at pixel time: Read more

Snap news

Breaking pre-market news on Monday,

- Vodafone considering an all-cash offer for Cable & Wireless Worldwide — statement Read more

Vodafone set to halt Greek unit merger

Vodafone is set to abandon attempts to merge its Greek business with rival Wind Hellas in the face of concerns among regulators about the precedent being set by allowing a duopoly in a European mobile market, says the FT. Vodafone’s Greek subsidiary and Wind Hellas had announced plans in September to pursue a merger to create a more competitive position in the difficult economic conditions in the country. Vodafone is the second-largest operator in Greece, ahead of Wind, but both are about half the size of Cosmote, the state-backed market leader. Vodafone took a £450m impairment loss on its Greek unit last quarter.

Snap news

Breaking pre-market news on Tuesday,

- Olympus admits to covering up losses since 90′s — statement and statementRead more

Verizon Wireless dividend hopes dashed

Verizon Communications has dashed the hopes of Vodafone investors by ruling out a return to a recurring dividend from the two companies’ US mobile phone joint venture, Verizon Wireless. Lowell McAdam, Verizon’s new chief executive, told the FT it was not possible to have a policy of annual dividend payments by Verizon Wireless because the leading US mobile operator may need to buy rival businesses or purchase radio spectrum. However, he sought to draw a line under long-standing tensions between the two companies, saying they were working closely together on several projects, and did not rule out the possibility of a merger.

Snap news

Breaking pre-market news on Monday,

- Vodafone confirms in talks with Wind Hellas on possible business combination — statementRead more

Verizon Wireless to pay $10bn dividend

Verizon Wireless will pay a long-awaited dividend of $10bn to its US joint venture partner, the UK’s Vodafone next January, the FT says. Verizon Communications, which owns 55 per cent of Verizon Wireless,had  blocked dividend payments by the mobile operator in 2005,  a move widely seen as an attempt to squeeze Vodafone out of the joint venture. Verizon Communications will receive $5.5bn and Vodafone will get $4.5bn. The move is also likely to forestall major changes to the two companies’ relationship, such as a merger or a buyout of Vodafone’s stake, the WSJ reports.

Snap news

Breaking pre-market news on Friday,

- BSkyB says will launch £750m buyback, announces 20 per cent dividend hike – statementRead more

Verizon to pay Vodafone dividend

Verizon Communications has agreed that Verizon Wireless, its US mobile phone joint venture with the UK’s Vodafone, will pay a long-awaited dividend of $10bn next January, the FT reports.  It will be the first dividend from Verizon Wireless since 2005, and Vodafone said that it would respond by making a special £2bn ($3bn) pay-out to its shareholders next February. The Telegraph says decision vindicates Vodafone chief executive Vittorio Colao’s determination to keep the Verizon Wireless stake, despite a policy of selling off non-controlling holdings.

 

Snap news

Breaking pre-market news on Friday,

- Vodafone reiterates guidance but sales performance in Europe disappoints — statementRead more

Vodafone profits rise despite Spanish woe

Squeezed consumer spending, increased competition and deeper discounts have forced Vodafone to take a full-year impairment charge of more than £6bn, almost half of which came from its troubled Spanish division, the FT reports. The world’s biggest mobile operator by revenue on Tuesday said the economic woes afflicting several southern European countries including Spain, Portugal, Greece and Italy, had pushed down full-year revenues from the continent by 3.4 per cent to £30bn. However, a strong performance from its Africa, Middle East and Asia Pacific operations – which reported revenues up by a fifth to £12.3bn – enabled the telecommunications group to boost total turnover by 3.2 per cent to £45.9bn.

Snap news

Breaking pre-market news on Tuesday,

- Talks between BP, Rosneft and AAR shareholders fail to reach agreement – Reuters. Read more

Vodafone to warn on consumer spending and regulation

Vodafone’s full year results are expected to be published alongside a cautious outlook pointing to squeezed consumer spending, regulatory cuts and increasing competition, reports Reuters. The world’s biggest mobile operator by revenue is aware that major rivals have suffered from intensifying competition in northern Europe, regulatory cuts, and ongoing economic difficulties in southern Europe. Analysts expect full-year revenues to hit 45.45 billion pounds, up 2.2 percent.

Vodafone to eye Indian listing if it wins $2.6bn tax battle

Vittorio Colao, chief executive of Vodafone, said the UK-based mobile phone operator would consider listing its Indian business if it won a long-running legal battle with Indian authorities over a $2.6bn tax bill, reports the FT. Tax authorities in the country have ordered Vodafone to pay $2.5bn in back taxes for its $11bn acquisition of Hutchison Whampoa’s 67 per cent stake in a domestic mobile operator that it completed three years ago.

Vodafone rises on SFR deal

Vodafone shares rose on Monday morning after the UK mobile phone group agreed to sell the remaining 44% of SFR, France’s second-largest mobile phone company, for €7.95bn (£7.02bn) to Vivendi, Europe’s largest publicly listed media company, which already owns 56% of SFR, reports the FT. Vodafone is “rather better at dismantling its empire than it was building it”, says Lex. But for CEO Vittorio Colao, says TheSource, the deal  is a clear message to investors about “how serious he is about getting the telecom giant’s house in order”. The WSJ meanwhile posts Dealogic’s profile of the deal.

Vodafone agrees €8bn SFR sale

Vodafone shares rose on Monday morning after the UK mobile phone group agreed to sell a 44 per cent of SFR, France’s second-largest mobile phone company, for €7.95bn (£7.02bn) to Vivendi, reports the FT. Jean Bernard Lévy, Vivendi’s chief executive, said the increase in profits that would result from the deal, subject to completion, would allow the group to raise the dividend for shareholders of Europe’s largest publicly listed media company and already owner of 56 per cent of SFR.

Vodafone agrees €8bn SFR sale

Vivendi has struck a deal with Vodafone to pay €7.95bn (£7.02bn) for the 44 per cent of SFR, France’s second-largest mobile phone company, it does not already own, reports the FT. Jean Bernard Lévy, Vivendi’s chief executive, said the deal would allow Europe’s largest listed media company to raise its dividend for shareholders. Vivendi said the €7.75bn price reflected a valuation of 6.2 times SFR’s 2010 pretax earnings. In addition, Vivendi will pay Vodafone €200m to reflect SFR’s extra cash generation between January and July this year. Vodafone CEO Vittorio Colao has been reducing the company’s portfolio by selling minority stakes in Chinese and Japanese mobile operators. The SFR deal would be the biggest disposal to date. One analyst told Bloomberg that for Vodafone, the price is “much better than most people expected”. NYT DealBook notes Vivendi was advised by Rothschild and Vodafone by Lazard.

Snap news

Breaking pre-market news on Monday,

- Speciality chemicals group Rhodia recommends €3.4bn cash offer from Solvay — statementRead more

Vivendi in SFR deal with Vodafone

Vivendi has struck a deal with Vodafone to pay €7.95bn (£7.02bn) for the 44% of SFR, France’s second-largest mobile phone company, it does not already own, reports the FT. Jean Bernard Lévy, Vivendi’s chief executive, said the deal would allow Europe’s largest listed media company to raise its dividend for shareholders. Vivendi said the €7.75bn price reflected a valuation of 6.2 times SFR’s 2010 pretax earnings. In addition, Vivendi will pay Vodafone €200m to reflect SFR’s extra cash generation between January and July this year. Vittorio Colao, Vodafone’s chief executive, has been reducing the company’s portfolio by selling minority stakes in Chinese and Japanese mobile operators. The SFR deal would be the biggest disposal to date. One analyst told Bloomberg that for Vodafone, the price is “much better than most people expected”. DealBook notes Vivendi was advised by Rothschild and Vodafone by Lazard.

Vodafone pays $5bn for Essar stake

Vodafone is to pay $5bn to buy the Essar conglomerate out of the UK mobile phone group’s Indian business, reports the FT. Vodafone said that put and call options were being exercised, under which Essar would sell its 33% stake in Vodafone Essar, the UK group’s Indian business, for $5bn cash. The deal should resolve an increasingly acrimonious dispute between Vodafone and Essar over how to value the Indian conglomerate’s minority stake in Vodafone Essar. In 2007 Vodafone bought a 67% controlling interest in what was then Hutchison Essar for $10.9bn. It was then renamed Vodafone Essar. Indian authorities meanwhile are pursuing Vodafone for $2.5bn in tax they insist is due on the 2007 deal.

Vivendi sets £6bn target for SFR stake

Vivendi is unwilling to pay Vodafone much more than £6bn ($9.6bn) for its minority stake in SFR, France’s second-largest mobile phone operator, reports the FT. Vivendi and Vodafone have begun talks about a proposal for the French media and telecoms group to buy the UK mobile operator out of SFR. But people close to the talks said Vivendi was reluctant to pay much more than £6bn for Vodafone’s 44% stake in SFR. Vivendi owns the remainder of SFR, and some analysts said the opening £6bn gambit for Vodafone’s stake underlined the French group’s hold on the negotiations. Given SFR has just two shareholders, Vivendi is the only likely buyer for Vodafone’s stake. If Vivendi paid £6bn for the stake, it would imply an enterprise value of €20.9bn ($29bn) for SFR, or 5.5 times the French mobile operator’s 2011 pretax earnings, said analysts.

TalkTalk(ing) non bid rumours

Shares in TalkTalk Telecom Group, Britain’s second-biggest broadband provider, are sharply higher on Thursday morning.

 Read more

Snap news

Breaking pre-market news on Wednesday,

- BBVA announces 9 per cent rise in full year profits, says bad debts stable — statementRead more

Vodafone tax dispute sours Indian adventure

Vodafone’s Indian adventure is in serious danger of turning into a nightmare, the FT reports. The UK group’s 2007 deal to secure control of one of India’s fast-growing mobile phone operators for $10.9bn was billed as a defining acquisition for Arun Sarin, Vodafone’s former chief executive. But India has turned into an expensive and highly unpredictable project for Vittorio Colao, Mr Sarin’s successor. The Indian authorities are pursuing Vodafone for $2.5bn (£1.6bn) in tax that they maintain is due on the 2007 deal. Senior government officials have also said Vodafone might have to pay $1bn in retrospective radio spectrum fees.