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User Rank: Light Sabre
9/29/2014 | 10:06:06 PM
Re: Waiting for the domino effect

> With some of the major global players looking to bulk up, maybe the likes of
> AT&T will have another look at some prime Euro assets

Prime Assets? Are you referring to Teleom Itlaia here? With the year-on-year revenue decline, how can they be classified as prime?
User Rank: Blogger
9/29/2014 | 2:29:31 PM
Re: Waiting for the domino effect
The governments of most European countries retained "golden shares" in their PTTs for many years that gave them rights to block takeovers for reasons of national interest. But the European Court of Justice ruled that these powers of veto were anti-competitive and not in the best interests of Europe as a whole. 

The KPN case was different in that a special foundation (not a government entity) was created to protect KPN from hostile takeovers. These poison pill arrangements are quite typical in the Netherlands. Arguably America Movil could have gone to an EU court to contest the foundation's powers but by the time that would be settled hell would have frozen over. 

Portugal Telecom is now (a small) part of Oi, the Brazilian telco. 

A tie-up between TDC and TeliaSonera or Telenor might make sense but they would need to make concessions (disposals) to appease anti-trust concerns. 

Belgacom is still 53% owned by the Belgian government and hence immune to takeovers (as a sale would be poltically unpalatable). 

Eircom IPO has failed. Hutchison just bought O2 Ireland so that rules them out. BT might make sense. 

KPN - even America Movil appears to be losing interest having cut its stake from 25.7% in March to 22.6% at the end of June.

Gabriel Brown
Gabriel Brown,
User Rank: Light Sabre
9/29/2014 | 8:01:59 AM
Re: Waiting for the domino effect
Isn't there a sub-clause somewhere in European law: You shall not takeover an incumbent PTT operator and national champion?

Eircom, Telekom Austria, TDC, (and Sonera?) are examples of firms where that didn't quite hold. But then, take the recent case of KPN.
[email protected],
User Rank: Blogger
9/29/2014 | 7:48:52 AM
Waiting for the domino effect
If Telecom Italia changes hands, I do wonder what knock-on effect that might have on other ownership/strategic scenarios.

The major operators look solid enough for time being but what does the future hold for the likes of Portugal Telcom, TDC, KPN, eircom, Belgacom etc? Can they survive as standalone businesses, or will they become the prey of aggressive investors (some already have of course, with Carlos Slim having made his entry into Europe...)

With some of the major global players looking to bulk up, maybe the lieks of AT&T will have another look at some prime Euro assets. 

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