Telecom Argentina: An Extremely Undervalued Situation
Mark Yagalla • 12 Comments
Mark Yagalla • 12 Comments
Fri, Feb. 26, 11:17 AM
- The slow-motion battle to acquire Telecom Argentina (TEO -0.6%) has a new wrinkle as Argentine businessman Carlos Newbery says he's ready to bid 10% more than an offer by Mexico's David Martinez.
- Telecom Italia (NYSE:TI), the owner of the Argentine telecom, agreed to sell it to Martinez's Fintech Advisory for $960M in 2013 and the deal is finally set to be approved by Argentine regulators who had opposed Martinez as unqualified to run the telecom.
- But Newbery tells Bloomberg: "The valuation and potential of the company is higher than what has been offered and we are ready to improve it up to $1.1B."
- Telecom Italia says it has a binding agreement requiring it to sell to Fintech until April 2017; meanwhile, Fintech has confidently announced a public tender for the shares of Telecom Argentina that it doesn't own at 46 pesos/share (about $2.98/share).
Sep. 2, 2014, 2:34 AM
Nov. 7, 2013, 3:29 PM
Nov. 6, 2013, 3:17 PM
- Sources tell Reuters that Telefonica (TEF +1%), fresh off reaching a deal to eventually take full control of holding company Telco's 22.4% Telecom Italia (TI +3.2%) stake, is set to give its approval to a series of moves meant to improve TI's balance sheet.
- In addition to a sale of TI's 67%-owned Brazilian unit TIM (TSU -2%), ideas on the table are said to include a €2B ($2.7B) capital raise, a dividend cut, and the sale of TI's Argentine unit (TEO -5.1%) and Italian mobile towers.
- No imminent decision is expected regarding the sale of TIM. Brazilian regulators, opposed to selling TSU in full to a rival carrier, are reportedly coming around to the idea of allowing it to be sold piecemeal to them, rather than demanding a sale to an outside party.
- Reuters add "insiders" are concerned Telefonica will unload its TI stake once the TIM sale is finished. Telefonica has been busy trying to pare its debt load by shedding assets in slow-growing European markets, as evidenced by the recent sale of its Czech unit.
- Meanwhile, the EU has opened an antitrust investigation into the €850M sale of Telefonica's Irish unit (O2 Ireland) to rival Hutchison. A decision will be made by March 24, 2014.
Sep. 25, 2013, 1:25 PM
- At a parliamentary hearing in Rome, Telecom Italia (TI -4.8%) reiterated his opposition to a sale of the company's Brazilian and Argentine assets, at least over the near-term. Bernabe argued selling the units, responsible for 40% of TI's 2012 revenue, would hurt the carrier's international profile.
- TIM (TSU -4.8%), TI's Brazilian unit, is joining TI in selling off after rallying yesterday. A downgrade to Hold from Stifel could be contributing to the losses. Telecom Argentina (TEO +0.3%), in which TI owns an indirect 37% stake, is up slightly.
- Bernabe's remarks come a day after Telefonica (TEF +0.8%) announced a deal that could let it eventually take full control of holding company Telco and its 22.4% TI stake. Telefonica, whose Brazilian unit (VIV -2.9%) competes with TIM, is widely believed to be pushing TI to sell TIM to shore up its balance sheet and appease regulator Anatel (previous).
- Bloomberg reports Anatel would prefer TIM be sold in full rather than have its assets sold piecemeal. That could translate into a sale into a major foreign carrier such as Vodafone or AT&T, which in turn would spell tougher competition for Telefonica and fellow Brazilian carriers Oi (OIBR -9.6%), America Movil (AMX), and NII Holdings (NIHD +1.1%).
Apr. 16, 2012, 12:09 PMMore on Argentina's takeover of YPF: The government will send a bill to Congress to take a 51% stake in the oil & gas giant for the "public good," according to an official. The move follows weeks of government pressure for the firm to spend more and pay its investors less. Shares -14%, Repsol (REPYY.PK) -1.7%. | Apr. 16, 2012, 12:09 PM | 9 Comments
Telecom Argentina SA engages in the provision of telecommunications services. It operates through the following segments: Fixed Services, Personal Mobile Services, and Nucleo Mobile Services. The Fixed Services segment offers basic telephone services; interconnection services; data transmission... More
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