SA News • Mon, Dec. 15
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Mon, Dec. 15, 12:27 PM
- BT (BT +0.2%) has entered into exclusive buyout talks with Orange (ORAN -0.9%) and Deutsche Telekom (OTCQX:DTEGY) regarding the purchase of their EE U.K. mobile JV. The exclusivity period will last several weeks, during which time BT will conduct due diligence.
- The companies are discussing a deal in which BT would pay £12.5B ($19.5B) in cash and stock to acquire EE, which claims 24.5M mobile subs (#1 in the U.K.). Deutsche would gain a 12% stake in BT, and have the right to appoint one director. Orange would have a 4% stake.
- BT and Orange have been halted. Telefonica (TEF -2.3%), which was talking with BT about selling U.K. carrier O2, has joined many other European names in selling off. Deutsche fell 1.8% today in Frankfurt.
Wed, Dec. 10, 10:00 AM
- The U.K.'s This is Money reports BT (BT +0.5%) is "poised to strike" a deal to buy Telefonica's (TEF -0.4%) O2 unit, and that an announcement could be made as early as this week.
- BT has shown interest in both O2 and Orange (ORAN -0.9%)/Deutsche Telekom's (OTCQX:DTEGY) EE JV, as the carrier tries to fully re-enter the U.K. mobile market (it already owns an MVNO) and offer quad-play bundles. O2 (has 24M customers) is believed to be a less costly M&A target than EE (27M customers).
- Orange CEO Stephane Richard has said he expects BT to make a decision on which carrier to bid for before Christmas.
Mon, Nov. 24, 9:29 AM
- Nearly a decade after it sold U.K. mobile carrier O2 to Telefonica (NYSE:TEF), BT is thinking of either buying back O2 or acquiring rival EE from Orange (NYSE:ORAN) and Deutsche Telekom (OTCQX:DTEGY), the FT reports. Spain's El Confidencial reports Telefonica could sell O2 in exchange for a 20% stake in BT.
- BT owns 4G spectrum, and already offers MVNO services through a deal with EE. EE and Vodafone are hatching plans to encroach on BT's turf by offering quad-play bundles. Engadget notes acquiring a mobile carrier make BT the only carrier with "full control over its home phone, broadband, mobile and TV services."
- BT has confirmed it has "received expressions of interest from shareholders in two UK mobile network operators, of which one is O2, about a possible transaction in which BT would acquire their UK mobile business." Orange CEO Stephane Richard recently stated EE's 50/50 ownership structure was unlikely to last.
- BT +3.3% premarket. TEF +1.5%.
Fri, Nov. 21, 12:02 PM
- "The 50-50 situation isn't a long-term scheme," says Orange (NYSE:ORAN) CEO Stephane Richard about his company's Everything Everywhere U.K. mobile JV with Deutsche Telekom (OTCQX:DTEGY). He adds "all options are open," but cautions investors not to "expect anything spectacular in the short-term."
- Bloomberg reported in October Orange and Deutsche were open to an EE sale, while adding an IPO was still "the most likely outcome" for the JV.
- With price competition remaining fierce and rivals narrowing EE's 4G coverage lead, the carrier saw its subscriber base (still the U.K.'s largest) fall by 2% Y/Y in Q3 to 24.5M. Both EE and rivals are now investing in offering triple-play packages.
- Orange has rallied on a good day for European equities. France's CAC 40 index is up 2.7%.
Tue, Nov. 11, 3:32 PM
- Orange (ORAN +3.9%) and Telefonica (TEF +2%) are higher in U.S. trading after Vodafone reported a smaller-than-expected calendar Q3 service revenue decline and upped its FY15 (ends March '15) EBITDA guidance. Over in Frankfurt, Deutsche Telekom (OTCQX:DTEGY) rose 2.2%.
- Though improved from Q2's 7.9% decline, Vodafone's European service revenue still fell 5% Y/Y in Q3. European mobile service revenue fell 5.6% (improved from Q2's 9% drop), as price pressure and voice/SMS revenue declines continue taking a toll.
Tue, Nov. 11, 6:59 AM
- The German government is considering decreasing its stakes in Deutsche Telekom (OTCQX:DTEGY) and Deutsche Post, and could renew the idea of selling shares in rail operator Deutsche Bahn depending on market conditions, according to a finance ministry document seen by Reuters.
- The document, to be presented to Chancellor Angela Merkel's cabinet on Wednesday, outlines plans for the government's holdings in a range of companies.
- The government currently has a 14.3% direct stake in the telecommunications operator.
Thu, Oct. 23, 10:40 AM
- Though it rejected Iliad's overtures, Deutsche Telekom (OTCQX:DTEGY) is still trying to find a suitor for T-Mobile USA (TMUS +2.7%), Germany's Manager Magazin reports.
- The magazine speculates America Movil (AMX +0.8%), which no longer counts AT&T as an investor, could make a bid. For now, Carlos Slim's carrier only operates in the U.S. through its TracFone Wireless prepaid MVNO.
- AMX is also about to get a windfall from the sale of Mexican assets being unloaded to appease regulators.
Thu, Oct. 16, 12:47 PM
- Though still calling an IPO "the most likely outcome" for the business, Bloomberg reports Orange (ORAN -2.9%) and Deutsche Telekom (OTCQX:DTEGY) have revived sale plans for top U.K. mobile carrier EE. One source values EE at €15B ($19B).
- Orange is said to be open to a sale of the JV "if it finds another M&A project." Last month, the French carrier made a $4.4B bid for triple-play Spanish wireline service provider Jazztel; Jazztel wants a higher offer.
- Orange and DT were reported in June to be open to an EE IPO. EE recently announced it would begin offering TV services to go with its mobile, landline, and broadband offerings. Revenue fell 2.5% Y/Y in Q2 thanks to prepaid mobile sub losses.
- Earlier: European telcos fall hard amid fresh Greek woes
Mon, Oct. 13, 1:26 PM
- France's Iliad (OTC:ILIAF) has abandoned its bid to acquire T-Mobile USA (TMUS -3.6%). T-Mobile has fallen sharply on the news.
- Bloomberg previously reported Iliad had set a mid-October deadline to up its initial (rejected) offer for T-Mobile, or walk away. Deutsche Telekom (OTCQX:DTEGY) was believed to be skeptical about Iliad's ability to run T-Mobile, and also nervous about selling one of its few growth assets.
- Update: Iliad says it abandoned its bid after Deutsche Telekom and certain T-Mobile board members "refused to entertain" an offer for a 67% stake (up from a prior 56.6%).
Fri, Oct. 10, 6:24 AM
- Deutsche Telekom (OTCPK:DTEGF, OTCQX:DTEGY) and China Mobile (NYSE:CHL) ink a JV offering telecom services in China's connected-cars business.
- The pair will jointly develop 4G-based vehicle-information services for drivers in the Chinese connected-car market. The JV will start operating at the beginning of 2015.
- The Chinese automobile market is the biggest in the world, and requirements for car safety and information and entertainment services in cars are expected to rise in the future.
- DT traders shrug off the news, with shares recently -2.2% in Frankfurt.
Thu, Oct. 2, 1:53 PM
- Sources tell Bloomberg Iliad's (OTC:ILIAF) revised offer for T-Mobile USA (TMUS +3%) would involve taking a "significantly larger stake" than its previous offer of 56.6%. However, its $33/share offer price would remain unchanged.
- Parent Deutsche Telekom (OTCQX:DTEGY), reportedly open to a $35/share deal, is said to be undecided on whether Iliad's revised offer would be adequate.
- Notably, Bloomberg adds Iliad has "had some success signing up financial partners to back its efforts." The company has reportedly discussed raising as much as $5B in stock and debt for an improved bid.
- T-Mobile has added to its gains, and is nearing $29.
- Earlier: Iliad reportedly prepping bigger offer for T-Mobile
Thu, Oct. 2, 1:21 PM
- Bloomberg reports Iliad (OTC:ILIAF) is prepping an offer that would involve the French carrier acquiring a larger T-Mobile USA (TMUS +1.4%) stake. Iliad previously made a rejected $33/share offer for a 56.6% stake.
- Iliad is believed to have set a mid-October deadline for upping its T-Mobile bid or walking away, and has made outreaches to P-E firms. T-Mobile parent Deutsche Telekom (OTCQX:DTEGY) is reportedly wary of Iliad's overtures.
- T-Mobile has caught a bid on the report. However, shares remain well below Iliad's original offer price.
Fri, Sep. 26, 4:00 PM
- Deutsche Telekom (OTCQX:DTEGY) is "preparing for the possibility" of keeping its T-Mobile USA (TMUS +1.4%) stake for at least another year if Iliad (OTC:ILIAF) fails to sufficiently improve its offer, sources tell Reuters.
- Iliad has reportedly set a mid-October deadline to improve its T-Mobile bid, after an initial $33/share offer for a 56.6% stake was rejected. Multiple reports have stated DT has its concerns about selling to to Iliad, especially given T-Mobile (unlike many of DT's European assets) is showing healthy growth.
- T-Mobile has dipped on the Reuters report, but is closing higher. Earlier today, Pac Crest argued T-Mobile should reject any offer below $40/share, given its recent performance. The firm added its retail checks indicated a pickup in switching activity (to T-Mobile) and termination fee reimbursements following the iPhone 6 launch.
Fri, Sep. 19, 6:30 PM
- Iliad (OTC:ILIAF) has set a mid-October deadline to either make a new T-Mobile USA (NYSE:TMUS) offer or walk away, Reuters reports. The French carrier is said to be talking with U.S. banks to help finance a higher bid.
- Reuters adds Iliad "faces resistance" from Deutsche Telekom (OTCQX:DTEGY), which would keep a minority T-Mobile stake under Iliad's proposed deal terms and is skeptical of the company's prospects in a market it currently has no presence in.
- Bloomberg reported earlier today Iliad was struggling to line up 3rd-party investors, and that DT's board was divided on whether it should "sell its only growing asset." Sources (within Iliad?) tell Reuters Iliad's management has "finished road shows to meet U.S. investors and is waiting to hear back from potential investors."
Fri, Sep. 19, 2:22 PM
- Iliad's (OTC:ILIAF) talks with KKR and other investment firms to make a joint bid for T-Mobile USA (TMUS -1%) haven't yet borne fruit, Bloomberg reports. The French carrier's $33/share bid for a 56.6% stake was shot down last month.
- Meanwhile, Deutsche Telekom (OTCQX:DTEGY), recently reported to be open to a $35/share offer for T-Mobile USA, is said to be split on whether it should "sell its only growing asset."
- Bloomberg adds Iliad has "discussed raising as much as $5 billion in additional debt and equity for a sweetened offer." Likely acting as a hurdle: T-Mobile, which has over $17B in debt, is investing heavily to build out its 4G network and grow its spectrum portfolio, and is sacrificing margins to gain share, isn't a conventional P-E target.
- Prior T-Mobile/Iliad coverage
Fri, Sep. 5, 4:35 PM
- Dish (DISH +0.9%) CEO Charlie Ergen contacted Deutsche Telekom (OTCQX:DTEGY) to let the carrier know he's interested in a deal to buy T-Mobile USA (TMUS +1.3%), sources tell Bloomberg. T-Mobile spiked shortly before the close on the report.
- Ergen hasn't been shy about making his interest in T-Mobile public, as Dish continues looking for ways to put its 4G spectrum to use. Sources caution Dish hasn't yet hired a bank to help pursue a bid, and that its seriousness is unclear.
- Bloomberg reported last week DT is open to a T-Mobile deal at $35/share. French carrier Iliad is trying to partner with P-E firms to sweeten its T-Mobile bid, after an initial $33/share offer for a 56.6% stake was rebuffed.
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