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Author Topic: New aqcuisition ??  (Read 18362 times)

Black Sheep

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kitz

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Re: New aqcuisition ??
« Reply #1 on: November 25, 2014, 08:24:39 PM »

I must admit that it seems rather strange that BT havent got a mobile interest.   Especially when they are venturing into other sectors such as TV and sport etc. 

Quote
In 2005, it was bought by Spanish operator Telefonica for £17.7bn.

I wonder how much it would cost to buy it back.
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Dray

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Re: New aqcuisition ??
« Reply #2 on: November 25, 2014, 08:32:22 PM »

£10bn?
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kitz

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Re: New aqcuisition ??
« Reply #3 on: November 25, 2014, 08:43:12 PM »

Woooooooah

Quote
BT has confirmed it is in "highly preliminary" talks to acquire O2’s business in the UK in a £6 billion deal.

The telecoms firm said it was also in talks with a second UK network, which it did not identify, but Sky News has reported that the mystery network is EE.


https://bdaily.co.uk/technology/25-11-2014/bt-in-preliminary-talks-to-buy-o2-in-a-6-billion-deal/
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burakkucat

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Re: New aqcuisition ??
« Reply #4 on: November 25, 2014, 08:57:14 PM »

In my mind it only seems like yesterday that BT Cellnet was sold off!  ::)
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UncleUB

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Re: New aqcuisition ??
« Reply #5 on: November 25, 2014, 10:36:36 PM »

God help us.. :-X
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kitz

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Re: New aqcuisition ??
« Reply #6 on: November 25, 2014, 11:56:49 PM »

I'd much rather it went to a UK company rather than some foreign organisation.  BT is one of our very few remaining companies that hasnt been sold out overseas.  Plus they provide proper jobs and apprenticeships... not saying owt about their Indian call centre though  :-X
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Chrysalis

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Re: New aqcuisition ??
« Reply #7 on: November 26, 2014, 03:14:02 AM »

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pedro492

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Re: New acquisition ??
« Reply #8 on: November 27, 2014, 02:20:57 AM »

Rather than a buyout, this feels more like a merger or a partnership between BT and Telefónica.

BT doesn't have the cash to buy O2 outright. And it apparently won't fund the purchase through borrowing since that would impact its credit rating.

Instead, BT wants to part-merge with Telefónica in an equity swap.

Quote from: Daily Telegraph (25 Nov):
[A]ccording to reports from Spain, Telefonica would seek a mix of cash to pay down its massive debts and BT stock in exchange for its UK arm [O2].

Ivan Palacios, an analyst at Moody’s, said that an all-cash deal would have a negative effect on BT’s Baa2 credit rating. However, he added that he would not expect BT to aggressively use debt financing as "it would contradict its stated ambition of achieving a Baa1 rating". As a result he said that BT was likely to use equity "to reduce the amount of debt needed".

Exchanging its own shares (through a new share issue), together with cash, to fund the acquisition of O2 from Telefónica.  In the deal on the table, Telefónica would end up owning about a 20% stake in BT, making it by far the largest shareholder. [1] [2]

Quote from: Wall Street Journal (24 Nov):
The two companies confirmed the talks after a report in the Spanish media said Telefónica was negotiating taking a 20% stake in BT in exchange for O2.

That's why this is more a merger than buy-out.

Unlike Telefónica which is mired in debt, BT remains relatively cash-rich. Thanks, in no small part, to those huge BDUK subsidies it receives from the British taxpayer.  BT's full year profits for 2013 were reported as £2 billion on group revenues of £18 billion.

It's rumoured that Telefónica would use the cash proceeds from the O2 sale as vulture funds to move in on the Ibero-American telecoms market, a region ripe for economic looting (aka "liberalising")    In an equity tie-up with Telefónica, British Telecom would become a partner in that economic imperialism.

Again, from the Wall Street Journal [1]:
Quote
For Madrid-based Telefónica, it would free up cash for investments in markets where it has a stronger competitive position, such as in Latin America’s largest economies.

Much the same strategy is being pursued in Latin- or Ibero-America by the so-called Inter-Alpha Group of British banks.  [the Ibero-American nations being the former Spanish and Portuguese colonies of the Americas].

British banks have created similar strategic partnerships, through equity swaps, with their distressed counterparts in Spain and Portugal (Banco Santander, Banco Espírito Santo/Novo Banco, Banco Bilbao Vizcaya, and so on).  Those strategic partnerships gaining the Inter-Alpha banks access to that largely untapped yet potentially lucrative Ibero-American market. [3] [4]

The proposed merger/tie-up between British Telecom and its Spanish counterpart Telefónica, and Telefónica's proposal to plough the O2 sale proceeds into Ibero-America, should be viewed with the same concern as the activities of the Inter-Alpha banking group in that economic region.

[1] http://online.wsj.com/articles/bt-in-talks-to-buy-telefonicas-u-k-unit-1416824657
[2] http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/telecoms/11254228/BT-shareholders-back-10bn-mobile-takeover-plans.html
[3] http://www.larouchepub.com/eiw/public/2010/2010_1-9/2010-07/2010-07/pdf/14-17_3707.pdf
[4] http://www.larouchepub.com/eiw/public/2010/2010_1-9/2010-07/2010-07/pdf/16-17_3707.pdf
« Last Edit: November 27, 2014, 06:04:27 AM by pedro492 »
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Black Sheep

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kitz

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Re: New aqcuisition ??
« Reply #10 on: December 07, 2014, 02:47:21 PM »

Quote
BT last week confirmed it had been approached by O2 and EE with a view to acquiring their mobile connection bases.

So it looks like Sky were correct in their speculation of EE as well as O2
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Black Sheep

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kitz

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Re: New aqcuisition ??
« Reply #12 on: December 14, 2014, 08:53:36 PM »

Quote
“BT is not expected to take much longer to choose between the two,”
Read more at http://www.trustedreviews.com/news/bt-to-choose-between-o2-and-ee-takeover-early-next-week#P8CSXEXCvP7yI8ch.99

Thanks BS.   So they have to chose one and not both.   Will be interesting then to see which they decide on as EE has the much larger mobile network with far more customers (off the top of my head - not checked)
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broadstairs

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Re: New aqcuisition ??
« Reply #13 on: December 14, 2014, 09:58:29 PM »

Well I hope they go for O2 because I'm not keen on EE who I'm with coming under the BT banner especially as I recently took an 18 month contract. O2 has a lousy signal round here but EE is good and I dont trust BT not to b**ls it up.

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Dray

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