& cplSiteName &

Eurobites: M&A Speculation Circles Colt

Paul Rainford
4/23/2014
50%
50%

Also in today's EMEA regional roundup: Ericsson reports Q1; Orange lines up man from the ministry; Spirent profits up; Russia's Zuckerberg does a runner.

  • Financial analysts are hinting that Colt Technology Services Group Ltd (London: COLT) might be sold following Tuesday's first-quarter financials and the announcement of a strategic shift that will see the service provider withdraw from the majority of its wholesale voice deals. The Guardian reports that analysts believe Colt's majority owner, Fidelity Investments, might be running out of patience with the operator and may look to sell its near 65% stake. Colt's share price stood almost unchanged at 130 pence Wednesday morning on the London Stock Exchange, giving the operator a market value of about £1.16 billion (US$1.95 billion). (See Eurobites: Colt Cuts Back on Carrier Voice Deals.)

  • Ericsson AB (Nasdaq: ERIC) saw its share price slide by more than 4% as it reported a 9% year-on-year decrease in first-quarter revenues to 47.5 billion Swedish kronor (US$7.24 billion), but the vendor's margins have improved and it is predicting better sales numbers for the second half of this year. (See Ericsson Looks to Future as Q1 Sales Slump.)

  • Orange (NYSE: FTE) CEO Stephane Richard is looking to beef up his management team with the addition of France's current Treasury chief, Ramon Fernandez, reports the Wall Street Journal. Richard was recently given at least four more years in charge by the Orange board.

  • Spirent Communications plc (NYSE: SPM; London: SPT), the test and measurement vendor, has released its first-quarter interim financials, showing revenues up 16% year-on-year to $111.9 million and profits up 9% to $8.3 million. Recent contract wins include Huawei Technologies Co. Ltd. , which chose Spirent TestCenter to validate the performance of its CloudEngine data center switch. (See Spirent Reports Q1 Interim Financials .)

  • OpenCloud Ltd. , the Service Provider Information Technology (SPIT) vendor that specializes in service brokers, went great guns in 2013, increasing revenues by 46% as customers looked to make the transition to IMS and VoLTE and explore the potential of WebRTC. The vendor, which doesn't provide any actual revenue numbers to go with its impressive percentages, says the early indications are that its growth spurt will continue in 2014. (See OpenCloud Boasts Strong Growth in 2013, Vodafone Egypt Deploys OpenCloud, and Building a Business Case for VoLTE.)

  • Things aren't quite so rosy at Telia Company : The Nordic operator reports first-quarter revenues down 2.5% to 23.97 billion Swedish kronor ($3.65 billion), while EBITDA slipped 1.9% to SEK8.34 billion ($1.27 billion). In his statement accompanying the results, President and CEO Johan Dennelind pointed the finger at "changing customer behavior and an evolving convergence trend." He also criticized the recent European Parliament vote in favor of net neutrality, saying that "this may limit the possibilities for us to meet demand from our customers." (See TeliaSonera Reports Q1.)

  • Pavel Durov, the founder of Russian social network VKontakte, has left the country after being "fired" as two allies of President Putin took control of the social media operation, report TechCrunch and the BBC, among others. The Facebook-like site had apparently got up the President's nose by giving free rein to voices critical of the Moscow regime.

    — Paul Rainford, Assistant Editor, Europe, Light Reading

    (3)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    Vishnu Goel
    50%
    50%
    Vishnu Goel,
    User Rank: Light Sabre
    4/25/2014 | 8:12:59 AM
    Re: Spirent ?
    The logical question now for this T&M company should be if it will pass the 1 Billion mark on its own? Will it use its cash for adjacencies business,or develop new blades/software platforms? M&A can be the next steps.Vishnu Goel T&M +919810101238
    Gabriel Brown
    50%
    50%
    Gabriel Brown,
    User Rank: Light Sabre
    4/24/2014 | 3:43:36 AM
    Re: Does the speculation make sense?
    Vodafone has bags of cash, is known to be in the market for wireline properties, and has big ambitions in enterprise. Maybe now's a good time to sell?
    Ray@LR
    50%
    50%
    Ray@LR,
    User Rank: Blogger
    4/23/2014 | 7:59:36 AM
    Does the speculation make sense?
    Re Colt - Fidelity is the majority shareholder and has been for some time. It has major representation on the board and surely the latest strategy decisoin has been discussed and approved at board level. I am not a financial analyst but if Fidelity wants to sell its stake in Colt I can't see that this would be a good time to do it -- if the new strategy pays off and in a year's time the margins are up and Colt is striking voice deals with enterprises at decent margins, then surely that's the time to sell up? Maybe I'm missing something. 
    From The Founder
    The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
    Flash Poll
    Live Streaming Video
    Charting the CSP’s Future
    Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it’s going from two industry veterans.
    LRTV Documentaries
    Leading Lights 2016 Highlights

    5|25|16   |   02:26   |   (1) comment


    Some of the high points from this year's Leading Lights awards dinner at the Hotel Ella in Austin, Texas.
    LRTV Documentaries
    Light Reading Hall of Fame 2016

    5|23|16   |   05:43   |   (0) comments


    Find out who has been welcomed into Light Reading's Hall of Fame this year.
    LRTV Custom TV
    ZTE TM Forum Highlights

    5|23|16   |     |   (0) comments


    ZTE showcased its new ICT solutions at TM Forum in Nice.
    LRTV Interviews
    Gamma's MD on the Emergence of UC2

    5|20|16   |     |   (0) comments


    Gamma Communications Managing Director David Macfarlane believes the unified communications (UC) market has reached a tipping point.
    LRTV Custom TV
    The Ultimate 5-Minute Guide to Digital Customer Engagement

    5|20|16   |     |   (0) comments


    In this short video, you will hear all about how Digital Customer Engagement is the key to meeting customer expectations, keeping them happy, and maximizing revenue. VP Product & Marketing at Pontis, Ofer Razon, breaks down for us the five essential capabilities for successful Digital Customer Engagement. Don’t miss!
    LRTV Custom TV
    NFV in 2016: Part 1 – NFV Use Cases Get Real

    5|19|16   |   05:57   |   (0) comments


    Consensus is building around the key use cases for NFV, including managed IP services at the network edge and on customer premises, which can generate new revenues from enterprises/SMBs and consumers; Evolved Packet Core to support LTE migration; and adjacent technologies, such as TAS and IMS, to support VoLTE and next-generation charging and policy control ...
    LRTV Custom TV
    Nokia's Steve Vogelsang on NFV – Part 3

    5|19|16   |     |   (0) comments


    Steve Vogelsang discusses the challenges of operational transformation and how Nokia helps its customers. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
    LRTV Interviews
    Level 3: Why UC Is In Demand

    5|17|16   |   04:12   |   (1) comment


    Andrew Edison, Level 3's senior VP of sales, EMEA region, talks about the drivers of growth in the unified communications services market.
    LRTV Custom TV
    ARM's OPNFV Action

    5|17|16   |     |   (0) comments


    At the ARM booth at MWC 2016, Joe Kidder and Bob Monkman speak to Light Reading about OPNFV and their upcoming action.
    LRTV Custom TV
    Nokia's Steve Vogelsang on NFV – Part 2

    5|16|16   |     |   (0) comments


    Steve Vogelsang gives advice to service providers on how to move to NFV. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
    LRTV Interviews
    Interoute CTO on NFV's Maturity

    5|13|16   |   06:46   |   (1) comment


    Matt Finnie, CTO at international operator Interoute, explains how NFV has made life easier in terms of logistics and how Interoute can now enable a 'software-defined moment' for its customers.
    LRTV Huawei Video Resource Center
    UBBS 2016 Highlights

    5|12|16   |     |   (0) comments


    Highlights of Huawei's UBBS event in Hong Kong.
    Upcoming Live Events
    September 13-14, 2016, The Curtis Hotel, Denver, CO
    December 6-8, 2016,
    June 16-18, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
    Hot Topics
    DT: Telcos Must Escape Vendor Prison
    Iain Morris, News Editor, 5/24/2016
    AT&T to Start 5G 'Friendly' Trial by 2016 End
    Dan Jones, Mobile Editor, 5/24/2016
    WiCipedia: Short Skirts & Back-Up Plans
    Eryn Leavens, Special Features & Copy Editor, 5/20/2016
    Google Doubles Down on Machine Learning, AI
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 5/19/2016
    Eurobites: Be More European, EU Tells Streaming Services
    Paul Rainford, Assistant Editor, Europe, 5/20/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
    Animals with Phones
    Live Digital Audio

    Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.