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Telefonica S.A. (TEF)

  • Dec. 12, 2014, 3:16 AM
    • The battle to sell BT (NYSE:BT) a mobile operator is heating up, after the chairman of O2's Spanish owner, Telefonica (NYSE:TEF), flew to London yesterday on word that rival EE was willing to offer more attractive terms to seal a deal.
    • "You can reasonably expect an announcement to be made by early next week, maybe as soon as this Friday," a source tells Reuters.
    • BT has been in talks with Telefonica and EE's owners, Deutsche Telekom (OTCQX:DTEGY) and Orange (NYSE:ORAN) for nearly a month about a deal to buy one of the mobile operators.
    • Previously: Report: BT opts for deal with O2, spurns EE
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  • Dec. 10, 2014, 1:53 PM
    • Bloomberg reports Oi (OIBR -2.6%), America Movil's (AMX -2.7%) Claro, and Telefonica's (TEF -0.7%) Vivo (VIV +2.8%) plan to jointly offer $15B for Brazilian rival TIM Participacoes (TSU +11.6%).
    • TIM has soared on the report, which comes shortly after Oi struck a deal to unload its Portuguese ops for $9.1B. TIM's market cap is now at $12.1B; parent Telecom Italia (TI +1.2%) has risen modestly.
    • A Brazilian paper reported in October Oi, Claro, and Vivo were interested in acquiring and breaking up TIM to consolidate a mobile market facing slowing growth and tough price pressure.
  • 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. 28, 2014, 1:56 AM
    • Hutchison Whampoa (OTCPK:HUWHY), the owner of Britain's fourth largest mobile operator 3 Group, is now entering the race for either O2 (NYSE:TEF) or EE, the U.K.'s number one and two wireless carriers.
    • The move sparks the prospect of a bidding war, as Deutsche Telekom (OTCQX:DTEGY) and Orange (NYSE:ORAN) confirmed on Wedneday that they were in talks to sell EE to BT (NYSE:BT).
    • Hutchison could put forward a bid for either EE or O2 by the end of the year.
    • Previously: Deutsche Telekom, Orange confirm EE sale talks
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  • Nov. 27, 2014, 1:27 PM
    • Monitise (OTCPK:MONIF) gets a £49.2M investment from strategic partners Telefonica (NYSE:TEF), Santander (NYSE:SAN) and Mastercard (NYSE:MA).
    • They will buy 161M ordinary shares at 30.5p/share (Nov. 26's close), representing 8.2% of the existing issued ordinary share capital.
    • Monitise also says it's in discussions to expand its commercial relationships with above partners "to support the development and accelerated rollout of its global platform capabilities."
    • IBM has agreed to deploy Watson in support of Monitise’s new technology platform.
    • Monitise also reiterates current year and longer-term guidance.
    • Short interest is ~11% of float.
    • Monitise was best performer on FTSE AIM 100 index today.
    • Source: press release
  • Nov. 26, 2014, 3:59 AM
    • Deutsche Telekom (OTCQX:DTEGY) and Orange (NYSE:ORAN) have confirmed that they are in talks to sell their U.K. wireless carrier EE to BT (NYSE:BT), in a move that could combine the U.K.’s biggest fixed-line operator and largest mobile operator.
    • The news comes after Monday's report that BT was in talks to buy EE or Telefonica’s (NYSE:TEF) U.K. mobile business O2.
    • EE was valued at about $19B by its co-owners in October.
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  • 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%.
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  • Nov. 12, 2014, 7:02 AM
    • Telefonica (NYSE:TEF): Q3 Net Income of €947M
    • Revenue of €13.02B (+2.8% Y/Y)
    • Press Release
    | 1 Comment
  • Nov. 11, 2014, 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.
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  • Oct. 31, 2014, 10:14 AM
    • Brazilian paper Folha de S. Paulo reports America Movil (AMX +1.6%), Telefonica's (TEF +1.2%) Vivo (VIV +4.9%), and Oi (OIBR +12.3%) have agreed in principle to pay R$31.5B ($13.1B) to acquire and break up TIM Participacoes (TSU +8.6%), Telecom Italia's (TI +2.9%) Brazilian unit.
    • The paper adds a formal offer will be made to TI shareholders. TI chairman Giuseppe Recchi says his firm hasn't yet received an offer. TIM's market cap is currently at $12.5B.
    • AMX would reportedly keep 40% of TIM, Telefonica 32%, and Oi 28%. Rumors of a joint bid have been around for weeks, as Brazilian carriers dealing with slowing growth and price wars bet consolidation will improve their fortunes.
    • Markets are responding well to the report. Oi merger partner Portugal Telecom (PT +8.9%), whose main asset is a stake in the combined company, is also rallying.
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  • Oct. 17, 2014, 10:37 AM
    • With its $11B acquisition of German rival E-Plus on the books, Telefonica (TEF +0.5%) plans to cut 1,600 of its 9,100 full-time positions in Europe's largest economy by 2018.
    • Telefonica Deutschland (OTC:TELDF +1.6% in Frankfurt) is aiming for $7B in revenue and cost synergies related to the E-Plus deal, in spite of the various concessions made to get EU approval. A source tells Bloomberg execs have also detailed plans to lower the post-merger company's tax payments.
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  • Oct. 16, 2014, 10:09 AM
    • New worries about the health of Greece's troubled banks have contributed to a selloff in European markets, one that has taken a toll on the continent's debt-laden telcos. The ECB is reportedly mulling a funding package for Greek banks.
    • Decliners: VOD -3.1%. TEF -4.2%. ORAN -4.5%. TI -6.5%. PT -3.9%.
  • Oct. 3, 2014, 7:01 AM
    • EU antitrust regulators have closed the investigation of Deutsche Telekom (OTCQX:DTEGY), Orange (NYSE:ORAN) and Telefonica (NYSE:TEF), after evidence could not be found showing that the telecoms providers shut rivals out of the Internet contents market.
    • "The Commission found no evidence of behaviour aimed at foreclosing transit services from the market or at providing an unfair advantage to the telecoms operators' own proprietary content services," says an EU exec.
    • The European Commission raided the companies in July last year due to concerns raised by Cogent Communications that the operators may have abused their market position.
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  • Oct. 1, 2014, 7:04 PM
    • With carriers turning cautious amid slowing subscriber growth and intense price pressure, R$5.8B ($2.4B) was spent during a closely-watched auction for Brazilian 4G spectrum, far less than the R$8B the government was hoping to raise.
    • America Movil (NYSE:AMX) bought a chunk of the airwaves, as did Telefonica's (NYSE:TEF) Vivo (NYSE:VIV) and Telecom Italia's (NYSE:TI) TIM Participacoes (NYSE:TSU). Oi (NYSE:OIBR), looking to strengthen its balance sheet follow the Portugal Telecom deal, decided to pass.
    • All 4 carriers have been the subject of M&A intrigue in recent months. Oi has reportedly been looking to merge with TIM, while TI is believed to have mulled a takeover of Oi. AMX says it's interested in partnering with Oi on a bid for TIM, and Telefonica has struck a deal to buy Brazilian wireline carrier GVT.
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  • Sep. 23, 2014, 5:20 AM
    • Mexico has received its first bid from a consortium led by Alcatel-Lucent (NYSE:ALU) and Ericsson (NASDAQ:ERIC) to build its proposed $10B state-owned mobile network - an effort that will break the hold of Carlos Slim's America Movil (NYSE:AMX) on the industry.
    • If the consortium's bid wins, those companies could be key suppliers of mobile antennae and other gear as well as manage the network.
    • Mexico expects to pick a winner in mid-2015.
  • Sep. 19, 2014, 2:52 AM
    • Vivendi (OTCPK:VIVHY) has signed a final agreement to sell its Brazilian wireline carrier GVT to Telefonica (NYSE:TEF) in a deal worth around €7.2B (9.3B) in cash and shares.
    • Vivendi will also receive a 7.4% stake in Telefonica Brasil (NYSE:VIV), at a stock market value of €2B, and a 5.7% stake in Telecom Italia (NYSE:TI), valued at €1B as of Sept. 18.
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Company Description
Telefonica SA is a telecommunications group which provides mainly fixed and mobile telephony, broadband, internet, data traffic, pay TV and other digital services.
Sector: Technology
Country: Spain