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AT&T (T) is reportedly looking at acquiring a 25% stake in Indian telecom venture Reliance...

AT&T (T) is reportedly looking at acquiring a 25% stake in Indian telecom venture Reliance Jio Infocomm for $3.5B in a deal that would represent the largest foreign direct investment in India. Reliance Jio Infocomm, which is controlled by the country's richest man, Mukesh Ambani, hasn't yet begun operating; it aims to break even within three years of starting services.
Comments (9)
  • mr putter
    , contributor
    Comments (29) | Send Message
     
    I'm long on T, and I wish I was longer. I feel T 's next 5 years will be
    twice as good as their last 5 years. ( as a stock performance).
    So, you are dead , on, looking at a stock that will be selling in the $45 to $50.00 price
    range. So, add to that price target, today's 4.9 % dividend yield.
    What is it that's not to like.....
    10 Mar 2013, 06:30 AM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (5589) | Send Message
     
    VOD should cash out the VZW investment and make such investments with that cash.
    10 Mar 2013, 09:44 AM Reply Like
  • babboo
    , contributor
    Comments (84) | Send Message
     
    There is a list of MNC who have lost money dealing with India's Reliance group and yet they keep coming.

     

    There must be some pay-off to the top executives to bring in dollars to Indian robber baron Mukesh Ambani.
    10 Mar 2013, 10:28 AM Reply Like
  • butchfoote
    , contributor
    Comment (1) | Send Message
     
    Nothing like blowing 3.5 billion on something that doesn't exist.
    10 Mar 2013, 10:56 AM Reply Like
  • User 379279
    , contributor
    Comments (3) | Send Message
     
    One of Vodaphone's ills today is that they have made such an investment in India and the country wants them to pay sales tax on the purchase too.
    10 Mar 2013, 12:18 PM Reply Like
  • rgperrin
    , contributor
    Comments (572) | Send Message
     
    AT&T has a long history of making money-losing deals, that is, buying high and selling low (e.g., NCR). I wouldn't expect the company's typically mediocre management to navigate India's very difficult legal and business bog with any more success than it has had in the past. AT&T could learn a lesson from Vodafone's experience with the Indian government's bad faith, but it likely will not.
    10 Mar 2013, 12:18 PM Reply Like
  • yougandhar1
    , contributor
    Comments (29) | Send Message
     
    Consumers are totally different in India. If the richest man wants to sell it to AT & T, If I was Ambani and I see a ROI why would I do that unless I sense this model is full of competitors? Consumers don't like to sign contracts in India even if you give them the most coveted IPHONE 5, which happens not be any more. Any way I wish I had money to short this transaction.
    10 Mar 2013, 04:48 PM Reply Like
  • tradewin
    , contributor
    Comments (658) | Send Message
     
    youngandhar1, Why? It's another aquisition that they can they itemize on the income statement as revenues, not to mention what they can tack on as goodwill in the balance sheet. And the Tatas and Birlas can continue to look for greener pastures in Malaysia because it takes about ten years just to get anything new going in India. Long T.
    10 Mar 2013, 07:10 PM Reply Like
  • JCLM
    , contributor
    Comments (31) | Send Message
     
    May be time to take gains and sell if T can't come up with a better use of cash than this.
    11 Mar 2013, 06:34 AM Reply Like
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