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Deutsche Telekom AG Wall Street Analyst Forum TranscriptMar. 27, 2008
Deutsche Telekom Q3 2007 Earnings Call TranscriptNov. 8, 2007
Deutsche Telekom AG Q2 2007 Earnings Call TranscriptAug. 9, 2007
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.
Mon, Sep. 1, 7:18 AM
- Despite its first bid at T-Mobile USA (NYSE:TMUS) being rebuffed, Iliad (OTC:ILIAF) says it is continuing to pursue a 56.6% stake of the mobile operator, and may now even partner with private equity funds to raise its offer.
- Iliad previously offered a bid of $33/share, although T-Mobile USA called the offer "a very inadequate value proposition."
- A report from Bloomberg last week announced that parent Deutsche Telekom (OTCQX:DTEGY) is open to holding talks to sell T-Mobile USA for $35/share or more.
Thu, Aug. 28, 1:03 PM
- Bloomberg reports Deutsche Telekom (OTCQX:DTEGY) is open to holding talks to sell T-Mobile USA (TMUS +2.1%) at $35/share or more. T-Mobile has risen above $30 in response.
- DT owns 67% of T-Mobile USA. French carrier Iliad (OTC:ILIAF) has offered $33/share for a 56.6% stake in T-Mobile, a bid T-Mobile has dismissed as "very inadequate."
- Sprint was rumored to be prepping a $40/share bid before abandoning its plans due to regulatory opposition.
Sun, Aug. 17, 9:32 AM
- Deutsche Telekom (OTCQX:DTEGY) is mulling acquisitions of smaller cable operators, reports Reuters quoting Focus magazine.
- "We are closely monitoring the TV-cable market and keep purchasing options open," says the company's head of German operations Niek Jan van Damme. "But things must fit together."
- Deutsche Telekom also recently announced that it is open to a deal for T-Mobile USA, but confirmed that it currently has no offer for the company which would boost the provider's position.
Thu, Aug. 7, 5:36 AM
- T-Mobile USA's (NYSE:TMUS) parent, Deutsche Telekom (OTCQX:DTEGY), has confirmed that it currently has no offer for T-Mobile USA which would boost the No.4 U.S. telecom provider's position.
- "We have always said that we would be open to offers for T-Mobile US which would improve its position and that of its shareholders," announces Deutsche Telekom CEO Tim Hoettges. "At the moment we don't have an offer which fits those criteria."
Tue, Aug. 5, 6:58 PM
- The WSJ reports Sprint (NYSE:S) is abandoning its bid to acquire T-Mobile USA (NYSE:TMUS) due to excessive regulatory hurdles.
- There were already many doubts about the ability of a Sprint/T-Mobile deal to pass muster with regulators.
- If Sprint is out of the picture, the coast is clear for Iliad (OTC:ILIAF) to pursue T-Mobile, provided financing isn't an issue. There were multiple reports earlier today indicating T-Mobile is rejecting Iliad's initial $33/share offer for a 56.6% stake.
- TMUS -5.6% AH
- Related tickers: OTCQX:DTEGY, OTCPK:SFTBF
Tue, Aug. 5, 3:59 PM
- The WSJ reports T-Mobile USA (TMUS +0.8%) has rejected Iliad's (OTC:ILIAF) request for access to its books, and won't change its mind in the absence of a better bid. The FT reports a formal rejection of Iliad's $33/share offer for a 56.6% stake in T-Mobile could arrive tomorrow.
- As it is, Deutsche Telekom (OTCQX:DTEGY) was reported to have liked Sprint's (S -1.4%) offer better. Sprint and parent SoftBank (OTCPK:SFTBF) are rumored to be offering ~$40/share, but their bid also carries much more regulatory risk.
- Reuters reports Iliad is talking with investors for help in sweetening its offer. Sources state the carrier has engaged pay-TV providers Dish , Cox, and Charter, as well as infrastructure, pension, and sovereign wealth funds.
- The news service adds DT is (not surprisingly) skeptical about Iliad's claim a merger between a French carrier and a U.S. carrier will yield $10B in synergies.
Fri, Aug. 1, 4:08 AM| 5 Comments
Thu, Jul. 31, 3:58 PM
- Sources tell Bloomberg T-Mobile USA (TMUS +6.7%) parent Deutsche Telekom (OTCQX:DTEGY) views Iliad's (OTC:ILIAF) $33/share offer for a 56.6% stake in T-Mobile as less competitive than Sprint's (S -5.9%) bid, previously reported to be around $40/share.
- Though Iliad declares its bid values the T-Mobile shares it won't own at $40.50, that figure includes $10B worth of synergies the French carrier predicts a merger will yield. Sprint and SoftBank (OTCPK:SFTBF), of course, predict their offer would also yield major synergies.
- "Iliad is about a third of the size of T-Mobile US, and we don't think there would be synergies from the deal," says analyst Jonathan Chaplin. He adds a deal will be tough to finance without Iliad founder/majority shareholder Xavier Neil surrendering control.
- Nonetheless, T-Mobile has rallied to $33 on news of Iliad's bid, which is bound to face less FCC/DOJ scrutiny if accepted and successfully financed.
- The offer is overshadowing a solid Q2 report from T-Mobile. The carrier saw 1.5M net customer adds in Q2 (up from 1.3M in Q1), slightly more than Verizon's Q2 adds and well above AT&T and Sprint's. Branded postpaid net adds totaled 908K (579K phone adds), and branded prepaid net adds 102K. Service revenue rose 7.1% Y/Y.
Thu, Jul. 31, 1:02 PM
- France's Iliad (OTC:ILIAF) is offering $15B in cash for a 56.6% stake in T-Mobile USA (TMUS +7.3%) at a price of $33/share. Iliad values the remaining 43.4% at $40.50/share. Sprint (S -5.3%) has been reported to be planning a ~$40/share deal.
- Iliad says it has obtained financing from unnamed banks, and would also do a capital raise to help pay for the deal. One issue: Iliad has a current market cap of just $16B, less than T-Mobile's $24.8B and Sprint's $30.6B. Sprint has reportedly lined up a $40B+ debt package to finance a T-Mobile deal.
- A source tells the WSJ Iliad, which has upended the French mobile market with its aggressive pricing, views a T-Mobile merger as a "one-time opportunity to enter the world's-largest telecoms market."
- Iliad also thinks (perhaps with good reason, given FCC/DOJ remarks) regulators will be more comfortable with its bid than Sprint's, since Iliad has no U.S. presence.
- AT&T (T -2%) and Verizon (VZ -2.3%) have joined Sprint in selling off, as investors mull the possibility of a deal that would leave the number of nationwide U.S. carriers at 4. Concerns about Iliad's pricing history might also be weighing on shares.
- Related tickers: OTCPK:SFTBF, OTCQX:DTEGY
- Earlier: Iliad reportedly bids for T-Mobile USA
Fri, Jun. 20, 1:54 PM
- Germany's Magazine Manager reports Netflix (NFLX -0.3%) is in advanced talks with Deutsche Telekom (DTEGY) about a marketing partnership ahead of the streaming giant's planned German launch
- DT, by far Germany's biggest carrier, is said to be comfortable with a tie-up even though it indirectly competes with Netflix through its Entertain IPTV service. Netflix is also reportedly talking with other local carriers.
- Netflix, already operating in several European countries, is also looking to enter France and 4 other continental markets this year. The company was reported in April to be talking with Vodafone (operates in many European markets) about a free streaming promotion.
- Netflix's relationships with U.S. service providers have often been thornier.
Fri, Jun. 13, 10:28 AM
- CNBC's reported breakup fee figure is higher than the $1B+ previously reported by the WSJ, but still well below the $4B T-Mobile (TMUS +0.2%) was paid by AT&T.
- The TV network also reports Sprint (S +1.8%) and T-Mobile have agreed the post-merger company will be called T-Mobile. Though the carriers are roughly equal in size, T-Mobile has been performing much better as of late, and keeping its name would please parent Deutsche Telekom (DTEGY), which uses the T-Mobile brand in other markets.
- Past reports have noted brash T-Mobile CEO John Legere will likely be the head of the combined company.
- Sprint is trading higher. With skepticism about regulatory approval still running high, a reports about a relatively low breakup fee might be going over well with the Street.
- Previous: Sprint, T-Mobile reportedly near agreement on ~$40/share deal
Thu, Jun. 5, 6:48 PM
- Reuters reports Orange (ORAN) has hired Lazard and Credit Suisse to weigh a bid for rival French mobile carrier Bouygues Telecom, and that the deal price could top €6B ($8.2B).
- The report comes after Vivendi agreed to sell SFR (another French carrier) to cable giant Altice, spurning a Bouygues bid in the process. Bouygues, which has a network-sharing deal with SFR, was later reported to be discussing a merger with upstart carrier Iliad, which for now is relying on Orange's network (talk about a tangled web).
- The French government has been interested in cutting the number of local mobile carriers to 3, but EU regulators might be less keen on the idea. Its pending ruling on Telefonica's concession-laden deal to acquire rival German carrier E-Plus could signal where it stands.
- Meanwhile, Bloomberg has reported Orange and Deutsche Telekom (DTEGY) might revive IPO plans for jointly-owned U.K. carrier EE (has 28M subs) after this summer. Orange and DT called off a planned IPO for the U.K.'s biggest carrier in January.
Wed, Jun. 4, 5:56 PM
- Bloomberg reports Sprint (S) and T-Mobile USA (TMUS) are near an agreement for a deal that would value T-Mobile at ~$40/share. The WSJ is also reporting a ~$40/share price.
- S +3.7% AH. TMUS +3.2% to $36.02 - a price that points to ongoing regulatory worries.
- Sprint's offer will reportedly feature a 50-50 cash/stock split, and leave Deutsche Telekom (DTEGY), which currently owns 67% of T-Mobile, with a 15% stake in the combined company. Bloomberg's sources state an announcement could happen by July.
- In addition, the carriers are reportedly close to agreeing on a breakup fee - Sprint and parent SoftBank (SFTBF) have reportedly been pushing for a smaller breakup fee for a deal that's bound to face tough DOJ/FCC scrutiny; T-Mobile and Deutsche Telekom have wanted a bigger one.
- More on Sprint/T-Mobile
Thu, May. 29, 9:12 AM
- Japan's Kyodo news agency reports Deutsche Telekom (DTEGY) has signed off on a SoftBank (SFTBF)/Sprint (S) bid to acquire its 67% stake in T-Mobile USA (TMUS).
- DT has previously suggested it's open to a deal as SoftBank/Sprint worked to line up financing - in addition to T-Mobile's equity, a deal has to account for $8.7B in net debt.
- But all signs suggest regulators remain wary of a tie-up lowering the number of nationwide U.S. mobile carriers to three, in spite of Masayoshi Son's relentless PR efforts.
- TMUS +1.6% premarket. S +2.5%.
Sun, May. 11, 2:09 AM
- Deutsche Telekom (DTEGF) wants Sprint (S) to agree to a breakup fee of over $1B in the event that regulators block the latter's possible acquisition of T-Mobile US (TMUS), the WSJ reports.
- The German carrier also wants Sprint to pledge to keep the T-Mobile brand and some of its management.
- Deutsche Telekom's demands come after regulators implied they would view any Sprint/T-Mobile tie-up skeptically. Three years ago, Deutsche received $3B when authorities blocked the sale of T-Mobile to AT&T.
- The sides are working on forging a deal in the near term, but could wait until after a government auction of wireless airwaves - which is expected in 2015 - or under a different White House administration.
- The operators might have a bit more clarity next week, when the FCC is due to decide on how much spectrum carriers can hold and the rules for the spectrum auction.
DTEGY vs. ETF Alternatives
Deutsche Telekom (OTCQX: DTEGY) is one of Europe's leading telecommunications and information technology service companies. Deutsche Telekom is also the parent company of T-Mobile USA, one of four national wireless carriers in the U.S., with 33.7 million customers. In Europe, we are Germany?s... More
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