Nov. 4, 2014, 8:58 AM
Sep. 2, 2014, 2:34 AM| Comment!
Aug. 1, 2014, 2:18 PM
- The International Swaps and Derivatives Association declared Argentina in default, a move which could trigger up to $1B on credit default swaps. Next up is an ISDA auction to settle outstanding CDS deals.
- Argentina bonds extended losses after the ISDA action, and the Global X Funds Argentina ETF (NYSEARCA:ARGT) is off 2.1% on the session.
- A selection of ADRs: Alto Palermo (APSA), Banco Macro (BMA -2.4%), BBVA Banco Frances (BFR -1.4%), Edenor (EDN +2.3%), Pampa Energia (PZE +0.1%), Telecom Argentina (TEO -0.6%), Tenaris (TS -0.1%), Ternium (TX -0.7%), YPF (YPF -0.9%).
Aug. 1, 2014, 6:49 AM
Nov. 7, 2013, 3:29 PM| Comment!
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%).
Aug. 16, 2013, 3:25 PM
- Argentinian stocks have climbed steadily since a teaser election last week saw weakening support for President Cristina Fernández's FPV party. Analysts viewed the FPV's poor 26% showing as a litmus test for elections in Oct. Half of the seats in the lower house and two-thirds in the upper house will be up in the air. In 2012, an FPV-dominated Congress nationalized the country's largest oil company, YPF, and erased Spanish Repsol's majority stake.
- The Global X FTSE Argentina 20 ETF (ARGT -0.7%) is up 3.9% on the week, increasing the ETF's 1-year gain to 25.8%.
- According to the WSJ, fund managers are "showing a greater willingness to seek out yield in unusual places," particularly as growth expectations in other emerging markets like Brazil and India dry up. Alta Vista Research notes that revenues of stocks in the Argentina ETF are expected to grow 33.5% this year and 20% in 2014 (the government-reported inflation rate is 10.5%).
- Key components of the index include Tenaris (TS) +8.3% YTD, MercadoLibre (MELI) +48.0% YTD, Telecom Argentina (TEO) +64.8% YTD, and Arcos Dorados (ARCO) -5.8% YTD.
Aug. 13, 2013, 12:49 PM
- Shares of Telecom Argentina (TEO +8.1%) are up sharply, even though no news has hit the wires.
- 54.7% of TEO shares are owned by Nortel Inversora (NTL +7.6%), itself 68% owned by Telecom Italia (TI) and 32% owned by the Werthein Group. (20-F)
- One possible reason for today's jump is the potential of a sale by Telecom Italia of its 37.2% indirect stake in TEO, as the Italian giant contends with the threat of a credit downgrade. The beleaguered telco recently ruled out floating a stock offering as a means to pare its onerous €28.8B net debt load, and has nixed a number of other strategic alternatives.
Jul. 1, 2013, 5:30 PM
Feb. 28, 2013, 12:53 PM
Jul. 30, 2012, 3:00 PM
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%. | 9 Comments
Apr. 4, 2012, 3:52 PMThe Argentine ETF (ARGT -4%) continues to tumble (off 13% in a month) as the U.K. sends a warship to the South Atlantic. Yesterday, President Kirchner yesterday called the U.K.'s claim on the islands "absurd." Also not helping are growing threats of nationalization of the country's oil giant YPF. | 2 Comments
Feb. 29, 2012, 3:13 PMSpain's Repsol (REPYY.PK -5.6%) follows shares of its Argentine subsidiary YPF sharply lower on worries President Fernandez could announce greater intervention into the oil giant's operations on Thursday. The Argentina ETF: ARGT -2.4% - also taking a hit as YPF no doubt makes up a nice chunk of its holdings. | Comment!
Feb. 24, 2012, 8:30 AMThe Economist removes Argentinian inflation statistics from its comprehensive economic statistics reporting, admitting numbers can be dodgy all over the world, but this particular figure is a special case of pure manipulation. "We see no prospect of a speedy return to credible numbers." ARGT +13.6% YTD. | 2 Comments
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Telecom Argentina SA provides fixed-line public telecommunication services, international long-distance service, data transmission and Internet services in Argentina. Its segments include Fixed Services, Personal Mobile Services & Ncleo Mobile Services.
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