Vodafone (VOD) buys Telstra's struggling New Zealand operations for NZ$840M ($670M). The unit...

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TwistTie Comments (2415)
 
Wait at minute. I was thing thinking about buying NZT to keep my VOD company.
12 Jul 2012, 02:28 PM Reply Like

Energysystems Comments (389)
 
haha I was thinking the same thing before this announcement(I also own VOD). NZT has a great niche, with a cushy divi. But now that VOD has entered the room, my chips are on the 800 lb gorilla.
13 Jul 2012, 02:27 PM Reply Like

Veritas1010 Comments (676)
 
Hmm...seems to be the old VOD. Buying minority shares in disparate markets (again!!!)...for what end? They just got through exiting China, Poland, Egypt under the exact same circumstances. What makes a fixed and isolated market like NZ (no offense to a beautiful nation, pls.), any different?

The whole point for the last 2 yrs.+ was to refocus VOD's energies and ownership clout in markets were it could make money and do more than just be big daddy and pick-up the tab for infra-structure.

Good company, poor management. The story continues...
13 Jul 2012, 05:59 PM Reply Like

Energysystems Comments (389)
 
They made a pretty penny with that China investment. If that's the "old VOD" then I wish they can do such deals dail.y
15 Jul 2012, 08:29 AM Reply Like

Veritas1010 Comments (676)
 
In the case of China they would have made more if they just held onto their cards, the China sale was not a good move. Rather it was an example of divestiture of a minority stake without prudent afterthought since in China they knew they would never control the enterprise to begin with. The sale was profitable, yes...but it was a knee-jerk reaction to criticism from the Ontario Teachers Credit Union that they had experienced a few years ago at a stockholder's meeting.

I'm long on VOD, and I think it is 'too big to fail' just by dint of owning 45% of Verizon Wireless, but management has a long history of underwhelming performance and a consistent failure to look at all potential exigencies before jumping into a new international market (look at VOD's entry in India and Essar, also examine how VOD used questionable purchase through a Chinese company and overseas tax-haven islands. While India is arguably not a stable investment environment for international firms, you would expect and hope that a British based company would understand these uncertainties - and its historical basis - and thereby advance their long-term opportunities by adhering closely to the rule of international law, and not use a Cayman Island like tax strategy in a developing nation of this magnitude and sensitivity.)

Poor choices + poor management = under performance of VOD's shares.
16 Jul 2012, 07:26 PM Reply Like

Energysystems Comments (389)
 
I agree that they should've held onto that chinese stake, but they nearly doubled their investment and it was only a 3.2% stake. I like the china mobile story, and I also own shares. I consider both china mobile and vodafone better long term investments than T/VZ, even though I'm rarely if ever a fan of "state-owned" companies. While New Zealand is a tiny, tiny market, it is nonetheless a captive consumer. 4 million of them. It's certainly not a growth story by any stretch of the imagination, but a consistent customer.

As for India, I don't blame VOD. India is burying themselves with these asinine attacks. Remember, the Supreme Court of India sided with VOD in the tax fight, only to have parliament attempt to change the tax laws retroactively.
17 Jul 2012, 01:54 AM Reply Like

Veritas1010 Comments (676)
 
Energysystem, I understand and respect your view concerning VOD and India. However, I guess my point is VOD ought to know better, culturally, historically and socially how to navigate the tricky and asymmetrical laws of developing nations in order to be successful overseas. Potentially sophomoric business maneuvers remind me of knee jerk international diversification that was done by BellSouth, and AT&T in Latin America and across the world in the 1990's. To be an effective international business you must understand closely the nuances of doing business abroad, otherwise you lose money and significant opportunities to others in the global market place.

As for NZ, yes, you are right. Small captive market. I just hope that VOD does a better job going forward with its international expansion and growth program, additionally I hope VOD develops an integrated business strategy that makes clear sense to investors and management alike. This vision has, arguably been an obscured and clouded one to many.

Pls. note I am sorry, I meant Ontario Teachers Retirement Plan, not Credit Union, it has been a few years since this was an issue and I did write from memory. But, the problem as raised within I believe is still cogent as concerns VOD...
18 Jul 2012, 07:46 PM Reply Like

Veritas1010 Comments (676)
 
Today, on VOD: http://seekingalpha.co...
16 Jul 2012, 07:30 PM Reply Like