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
Thursday, Mar 61:49 PM
Thursday, Mar 61:49 PM| 5 Comments
- "I don’t want to insist on [U.S. mobile] consolidation, but I don’t want to rule it out," says Deutsche Telekom (DTEGY, DTEGF) CEO Tim Hoettges.
- The remarks come after Hoettges reportedly told DT's board he considers a sale of 67%-owned T-Mobile USA (TMUS -1.8%) unlikely in the near-term, given regulatory opposition to a bid from Sprint (S -3.6%) and parent SoftBank (SFTBF, SFTBY).
- Citing T-Mobile USA's aggressive investments, DT now expects its 2015 free cash flow to only be up "slightly" from 2014 levels. The carrier previously forecast 2015 FCF to rise to €6B ($8.3B) after hitting €4.2B ($5.8B) in 2014.
- Sources tell Bloomberg Hoettges is now "taking a long-term view in the U.S.," and is focused on converting more of T-Mobile's giant prepaid base into postpaid subs.
- DT shares fell 3.6% in Frankfurt. Both T-Mobile and Sprint are selling off in U.S. trading.
- More on Sprint/T-Mobile
Wednesday, Mar 54:03 PM
Wednesday, Mar 54:03 PM| 7 Comments
- Deutsche Telekom (DTEGY, DTEGF) Tim Hoettges says a sale of 67%-owned T-Mobile USA (TMUS +0.1%) is unlikely anytime soon. T-Mobile and Sprint (S -0.5%) have both moved moderately lower in response.
- The WSJ reported yesterday SoftBank's (SFTBF, SFTBY) Masayoshi Son plans to mount a PR campaign to convince skeptical businesses and policy makers regarding the value of a Sprint/T-Mobile merger.
- Sprint/SoftBank have been widely reported to be lining up financing for a T-Mobile bid.
Monday, Feb 101:04 PM
Monday, Feb 101:04 PM| Comment!
- Deutsche Telekom (DTEGY, DTEGF) is buying out P-E firm Mid Europa Partners' 39.23% minority stake in the carrier's Czech mobile unit for €800M ($1.09B).
- DT asserts the deal complements its efforts to integrate its Czech IT services business (T-Systems Czech Republic), and its pending acquisition of Central European wireline carrier GTS Group. It comes four months after Telefonica struck a deal to sell its Czech unit to local tycoon Petr Kellner.
Monday, Feb 103:07 AM
Monday, Feb 103:07 AM| 9 Comments
- Sprint (S) is rethinking its attempt to buy T-Mobile US (TMUS) from Deutsche Telekom (DTEGF) after the Justice Department and the FCC expressed skepticism that the acquisition would be allowed, the WSJ reports.
- Sprint could still try to purchase T-Mobile, but executives will take their time in order to refine their strategy and antitrust arguments.
Thursday, Feb 611:16 AM
Thursday, Feb 611:16 AM| 2 Comments
- After rallying yesterday on a report Sprint (S -6.1%) is close to lining up $45B in financing for a T-Mobile USA (TMUS -5.4%) bid, Sprint and T-Mobile are selling off following a Bloomberg report stating FCC/DOJ regulators have "resisted the concept" of a merger between the carriers in preliminary talks with SoftBank's (SFTBF) Masayoshi Son, and that Son and Sprint's Dan Hesse now "plan to decide in the next few weeks whether to move ahead on a bid."
- Bloomberg adds Deutsche Telekom (DTEGY) has asked Son to "gauge regulatory sentiment" towards a merger, and that Son and DT's perception of regulatory feedback will "determine their next steps."
- In addition, SoftBank and DT are reportedly at odds over the breakup fee for any deal - SoftBank wants a small one on account of regulatory risks, DT feels differently.
- FCC and DOJ officials have already suggested they're skeptical about backing a merger between the #3 and #4 U.S. mobile carriers. While Sprint might argue the carriers need to merge to effectively compete against Verizon/AT&T, T-Mobile's recent share gains bring that claim into question.
- More on Sprint/T-Mobile
Wednesday, Feb 52:20 PM
Wednesday, Feb 52:20 PM| 12 Comments
- Sources tell dealReporter Sprint (S +6.5%) is close to obtaining $45B in financing for a T-Mobile USA (TMUS +3.9%) bid. Both Sprint and T-Mobile shares have spiked higher in response.
- The WSJ previously reported Sprint has received proposals from at least two banks for a bid that would value T-Mobile's equity at $31B. In addition to the financing needed to acquire Deutsche Telekom's (DTEGY) 67% T-Mobile equity stake, Sprint and parent SoftBank (SFTBF) will need funds to cover (and potentially refinance) T-Mobile's $20B debt load.
- The report comes as DOJ/FCC officials continue taking a skeptical view of a deal that stands to reduce the number of nationwide U.S. carriers to three.
Tuesday, Jan 286:44 PM
Tuesday, Jan 286:44 PM| 9 Comments
- The WSJ reports Sprint (S) CEO Dan Hesse and SoftBank (SFTBF, SFTBY) chief Masayoshi Son met DOJ officials this month regarding a possible T-Mobile USA (TMUS) bid, and were told a deal would be viewed "with skepticism."
- The paper adds SoftBank and T-Mobile USA parent Deutsche Telekom (DTEGY, DTEGF) have been talking about a deal, but are still "working through remaining issues" such as the size of the deal's breakup fee (Son reportedly is pushing for a small one) and whether Sprint or T-Mobile's brand would be retained.
- Both the DOJ and FCC have been expected to show intense scrutiny of a merger that would lower the number of nationwide U.S. carriers to three, and feature a carrier that has been upending the U.S. mobile industry with new promotions and pricing schemes.
- TMUS -1.7% AH.
- More on Sprint/T-Mobile
Monday, Jan 271:48 PM
Monday, Jan 271:48 PM| 7 Comments
- During a Bloomberg TV interview, outspoken T-Mobile USA (TMUS -0.1%) CEO John Legere provided fresh hints his firm is open to merging with Sprint (S +6.5%).
- Legere: "We all need better scale and capability ... The question starts to be: How do you take the maverick and supercharge it? We either need more spectrum and capability and a lot more investment, or we need consolidation."
- Sprint and parent SoftBank (SFTBF, SFTBY) have been widely reported to be lining up financing to acquire Deutsche Telekom's (DTEGF, DTEGY) 67% T-Mobile USA stake. But regulators might object to a tie-up, particularly given T-Mobile's efforts to shake up the U.S. mobile industry via aggressive/novel pricing schemes.
- Separately, Sprint announces it has expanded its 4G LTE network to cover 40 more markets, including Milwaukee and Salt Lake City. Sprint, which is trying to neutralize Verizon and AT&T's LTE coverage leads, now offers LTE in 340 markets.
Sunday, Jan 191:21 AM
Sunday, Jan 191:21 AM| 9 Comments
- SoftBank (SFTBF) and Deutsche Telekom (DTEGF) are attempting to resolve obstacles to Sprint's (S) possible acquisition of the German carrier's 67% holding in T-Mobile USA (TMUS), Bloomberg reports.
- Such obstacles include much cash and stock SoftBank will pay - Deutsche Telekom wants the whole deal to be in cash - how Sprint and T-Mobile would be integrated, and the size of a break-up fee.
- Softbank is looking to borrow $20B to finance the deal, which could value T-Mobile at $31B vs its market capitalization of $26B. Sprint would take on the debt.
- More Spring / T-Mobile deal.
Friday, Jan 1712:13 PM
Friday, Jan 1712:13 PM| 1 Comment
- Orange (ORAN +0.2%) and Deutsche Telekom (DTEGY, DTEGF) have cancelled plans to take their Everything Everywhere U.K. mobile JV public. Orange asserts maintaining the current 50/50 JV structure is the "best option for value creation."
- Bloomberg reported in September Orange and DT were delaying an effort to sell EE as they waited for AT&T to expand into Europe (possibly by bidding for EE rival Vodafone). The fact debt-laden DT appears set to receive one of more bids for its 67% stake in T-Mobile USA (a sale could fetch the company more than $20B) might also be influencing its decision.
- EE is the U.K.'s largest mobile carrier (28M subs), and established an early lead in rolling out 4G services within the country. The company's 4G base recently surpassed 2M.
Thursday, Jan 165:20 PM
Thursday, Jan 165:20 PM| 8 Comments
- The WSJ reports Sprint (S) has "received proposals from at least two banks" for financing a T-Mobile USA (TMUS) bid, and envisions valuing T-Mobile's equity at $31B (compares favorably to a current market cap of $26B).
- Financing, of course, is only one of several challenges Sprint would face in merging with T-Mobile. The company and parent SoftBank (SFTBF) would have to negotiate a deal for Deutsche Telekom's (DTEGY, DTEGF) 67% T-Mobile stake. They would also have to win the blessing of FCC/DOJ regulators who seem to prefer having four nationwide carriers around, and appear to be pleased with T-Mobile's aggressive pricing.
- There's also the matter of Dish (DISH -2.2%), which reportedly won't stand idly if Sprint bids for T-Mobile, and could have much less trouble winning the blessing of regulators.
- In addition to acquiring Deutsche's T-Mobile stake, Sprint may need to backstop a possible refinancing of ~$20B worth of T-Mobile deal.
- S +2.8% AH. TMUS +2.3%.
Tuesday, Dec 242013, 1:33 PM
Tuesday, Dec 242013, 1:33 PM| 13 Comments
- The Nikkei reports SoftBank (SFTBF, SFTBY) is "in the final stages of talks" with Deutsche Telekom (DTEGY, DTEGF) regarding a deal in which 78%-owned Sprint (S -0.2%) would acquire Deutsche's 67% stake in T-Mobile USA (TMUS +1%). Sources add the deal could happen as soon as next spring, and could be worth more than ¥2T ($19.2B).
- A ¥2T price tag for Deutsche's T-Mobile USA stake would translate into a $28.7B valuation for the #4 U.S. mobile carrier. T-Mobile USA, whose shares have risen sharply thanks to Sprint M&A rumors, currently has a market cap of $25.5B.
- SoftBank CEO Masayoshi Son has reportedly been busy lining up financing for a T-Mobile USA bid, which is bound to be intensely scrutinized by regulators. Reuters has reported Dish (DISH +1.1%) is also thinking of bidding for T-Mobile, and wouldn't stand idly if Sprint made a move.
Monday, Dec 22013, 8:45 AM|Monday, Dec 22013, 8:45 AM| Comment!
Monday, Nov 112013, 8:41 AM
Monday, Nov 112013, 8:41 AM| Comment!
- Twitter (TWTR) has been started at Neutral by Sterne Agee. Shares -1.4% premarket after dropping 7% on Friday in the wake of neutral/bearish coverage launches. Shares still +58% from their $26 IPO price.
- Veeva Systems (VEEV) has received four bullish ratings and two neutral ones on underwriter coverage day. Shares +0.6%.
- American Tower (AMT) has been upgraded to Buy by Citi.
- Youku (YOKU) has been upgraded to Buy by Brean ahead of Thursday's Q3 report. Shares +3.1%.
- BT has been upgraded to Overweight by JPMorgan after outbidding Sky for the U.K. TV rights to Champions League games.
- Netgear (NTGR) has been upgraded to Sector Perform by RBC.
- Deutsche Telekom (DTEGY, DTEGF) has been cut to Sell by Goldman after striking a $729M deal to buy wireline carrier GTS Central Europe.
- Lam Research (LRCX) has been cut to Neutral by Susquehanna.
- Diodes (DIOD) has been cut to Outperform from Strong Buy by Raymond James ahead of tomorrow's Q3 report.
Sunday, Nov 102013, 3:26 PM
Sunday, Nov 102013, 3:26 PM| Comment!
- Deutsche Telekom (DTEGY) is set to buy GTS Central Europe (which runs a fixed-line fiber optic network) from Columbia Capital, HarbourVest Partners, Innova Capital and M/C Partners for around $730M.
- GTS' markets include the Czech Republic, Poland, Hungary, and Romania.
- Revenues for GTS in 2012 (minus Slovakia, where assets are staying with the current owners, according to Reuters) were €347M.
Tuesday, Oct 82013, 2:47 PM
Tuesday, Oct 82013, 2:47 PM| Comment!
- Deutsche Telekom (DTEGY.PK) is selling $3.1B worth of T-Mobile USA (TMUS -0.4%) bonds in its possession. The debt, which DT obtained through the MetroPCS deal, consists of 2019 and 2021 notes worth $1.25B apiece, and 2023 notes worth $600M.
- DT, which (like many European carriers) is saddled with a huge debt load, only says it will use the proceeds for general corporate purposes. T-Mobile USA had $9B in debt on its balance sheet at the end of Q2, and $2.4B in cash/investments.