Deutsche Telekom AGOTCQX
Fri, Nov. 4, 12:51 PM
- More Brexit fallout: Deutsche Telekom (OTCQX:DTEGY -0.7%) is thinking of selling its 12% stake of British incumbent telecom BT Group (NYSE:BT), Reuters reports, depending largely on what kind of deal the UK strikes to get out of the European Union.
- BT is off 1.8% in U.S. trading; it closed down 2.6% in London.
- That stake is worth about £4.4B ($5.5B), and Deutsche Telekom may see that money as better deployed elsewhere with a falling pound and projections for shrinking growth.
- The company (BT's biggest shareholder after the EE acquisition) can't sell the stake through normal means due to a lock-up lasting until August 2017; it can agree to an off-market deal with investors.
- DT is also rumored to be selling its British IT and consulting business, run through its T-Systems unit; it once tried to merge that business with BT's Global Services.
Fri, Nov. 4, 10:18 AM
- Vodafone (VOD -0.3%) has sold its fixed-line operations in the Netherlands to T-Mobile Nederland (OTCQX:DTEGY -0.9%).
- That's part of a concession it made to EU regulators in order to secure approval for its bigger merger -- of its operations in the country with Ziggo, the Dutch unit of Liberty Global (LBTYA +2.1%).
- Europe in early August signed off on the deal, which will create a stronger competitor to Dutch incumbent Royal KPN (OTCPK:KKPNY -1.3%).
Tue, Mar. 1, 9:38 AM
- T-Mobile (NASDAQ:TMUS) is up 1.2% in early going after Deutsche Telekom (OTCQX:DTEGY) reportedly put any sale of its U.S. arm on ice, with a U.S. election on the way and spectrum auction dead period dead ahead.
- Participants in the FCC's broadcast incentive airwaves auction, set to begin at the end of the month, won't be allowed to talk partnerships or mergers during bidding, which could last for months.
- The German giant will wait for a more favorable environment before looking at another sale.
- After a previous attempt to merge T-Mobile and Sprint (NYSE:S) went awry, consensus formed that the two would need to wait until a new post-Obama administration to give a tie-up another thought.
Sep. 4, 2015, 1:44 PM
- A merger between Liberty Global (LBTYA -1%) and Vodafone (VOD -1.6%) would draw an objection from Deutsche Telekom (OTCQX:DTEGY -0.5%) over concerns about the TV market, according to the head of DT's German business.
- “We would definitely have some remedies and protests against a merger, but we also expect the authorities to have a view on that,” said Niek Jan van Damme.
- Amid rumors of a bigger tie-up, Liberty Global and Vodafone have said they're discussing asset swaps in Europe, though operations in some countries are better fits than others. The two companies' broadband businesses don't overlap and don't present a competitive problem, van Damme says.
- Deutsche Telekom, meanwhile, is exploring more content partnerships and infrastructure sharing (such as networks).
- Previously: Summer's end may bring resolution for Vodafone, Liberty (Aug. 17 2015)
- Previously: Liberty Global, Vodafone see better rules environment for swaps (Jun. 12 2015)
- Previously: Liberty Global CEO: Need mobile services to complete quad-play (Jun. 09 2015)
Jun. 12, 2015, 5:19 PM
- Today in telecom consolidation speculation: While Dish Network (NASDAQ:DISH) and T-Mobile (NYSE:TMUS) have been talking about a deal with upsides for both (and shareholders have driven DISH up 2.6%, TMUS up 1.8% since word broke June 3), they aren't each other's only option.
- And much of what transpires there depends on T-Mo parent Deutsche Telekom (OTCQX:DTEGY) and what it wants to do with an asset that can command top dollar as perhaps the last attainable big U.S. cell provider.
- “They’re obviously controlled by a German company who has strategic initiatives, both in Europe and the United States, and they may not be in a position where they want to do anything," Dish chief Charlie Ergen said in a Bloomberg TV interview.
- From Dish's perspective: It doesn't need to rush, as it's making free cash flow and has time to sit on its large spectrum stockpiles yet. Ergen could look for a sale to Verizon (NYSE:VZ), or break the spectrum off into a separate company with a sale-leaseback. In any case, many deals that seemed well under way have been kiboshed by the mercurial Ergen.
- Fron T-Mobile's: Deutsche Telekom is reportedly worried about an overvalued Dish and getting too much of that stock. T-Mobile could probably command $49/share in a sale, or a 25% premium, says Gabelli's Sergey Dluzhevskiy. One company that wouldn't blink at that price would be Comcast (NASDAQ:CMCSA) in its own quad-play grab.
- Altice (OTC:ATCEY), which considered a run at Time Warner Cable (NYSE:TWC), could be a long-shot for T-Mobile, or even Charter (NASDAQ:CHTR). And with AT&T expanding in Mexico, how interesting would it be if América Móvil (NYSE:AMX) pumped up its U.S. presence with Big Magenta?
Jun. 12, 2015, 9:19 AM
- As Liberty Global (NASDAQ:LBTYA) and Vodafone (NASDAQ:VOD) talk about swapping assets in Europe, both companies think increased telecom competition has made Europe's regulators more relaxed about consolidation issues.
- "We see that big telecoms providers are allowed to merge," Manuel Cubero, chief executive of Vodafone's Kabel Deutschland told Reuters in Germany. "We see that politicians support this trend in order to strengthen the ability of companies to invest."
- Germany is one epicenter of the swaps discussion as the two companies have heavy overlap in the region. It's Vodafone's largest market by sales and likely hopes to get Liberty cable operations there in any swap -- "The more we grow, the better we can compete with Deutsche Telekom (OTCQX:DTEGY) in broadband," says Cubero -- but neither firm may be willing to part with UK business.
- "The Commission's view of consolidation in the telecom sector in Europe has changed," says Lutz Schueler, head of Liberty's German business Unitymedia.
- Vodafone's Kabel Deutschland and Liberty's Unitymedia are the No. 1 and No. 2 cable operators in Germany respectively. The country has 29.6M broadband connections, but 23.3M of those are via phone lines and more than half of those controlled by Deutsche Telekom.
Jun. 11, 2015, 5:45 PM
- Dish Network (NASDAQ:DISH) is talking to banks about funding a bid to acquire T-Mobile (NYSE:TMUS), to the tune of $10B-$15B in borrowing for the cash part of the deal, The Wall Street Journal is reporting.
- T-Mobile is up 3.6% after hours; Dish is up 1.7%.
- The deal's in early stages, but as discussed, the stock portion would leave T-Mobile parent Deutsche Telekom (OTCQX:DTEGY) with a significant minority stake in the combo.
- No word on how much Dish would pay for T-Mobile, but talking with banks shows it's moving forward.
- In the previous discussions, one key issue already seems sorted out among the personality-laden leaders: Dish CEO Charlie Ergen would serve as chairman, while T-Mobile's John Legere would be CEO.
Jan. 20, 2015, 11:28 AM
- Believing T-Mobile (TMUS +1.4%) will see "an inflection to positive and rapidly growing [free cash flow] in 2015," Goldman's Brett Feldman has upgraded the Un-Carrier to Conviction Buy from Neutral, and hiked its target by $10 to $37.
- Feldman also thinks T-Mobile will provide strong 2015 EBITDA guidance, thanks to slowing expense growth and higher MetroPCS synergies. He forecasts 2015 EBITDA of $7.7B (above a $7.09B consensus), and has upped his 2015 net postpaid subscriber add estimate by 500K to 3.5M (implies further share gains).
- Meanwhile, in comments that might be aimed at U.S. politicians and regulators more than investors, Deutsche Telekom (OTCQX:DTEGY) CEO Tim Hoettges insists T-Mobile's current approach isn't sustainable, and that a merger is the U.S. subsidiary's best long-term hope for achieving needed scale. "I was intrigued by the idea of having a combination with Sprint and being the ‘super-maverick’ in the market. I hope that the political environment will change at one point in time."
- T-Mobile and (especially) Sprint plunged last year after Sprint abandoned its merger efforts in the face of FCC/DOJ opposition. T-Mobile's recent postpaid share gains likely influenced regulatory thinking.
Dec. 15, 2014, 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.
Dec. 10, 2014, 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.
Nov. 24, 2014, 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%.
Nov. 21, 2014, 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%.
Oct. 23, 2014, 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.
Oct. 16, 2014, 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
Oct. 13, 2014, 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%).
Oct. 2, 2014, 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