SingTel plans acquisition in China and US (Singapore)
Leading telecom operator in Singapore, SingTel has hinted towards acquiring businesses in China or US, to make up or slow growth in its domestic market.
As per a statement made by the company, SingTel may raise its stakes in associates in Asia and Africa and make other strategic investments. The company reported a 30 percent jump in fourth-quarter profit. Net income climbed to $1 billion in the three months ended March 31.
Chief Executive Officer Chua Sock Koong, said that when they look at acquiring the technology know how in the start up space, they could be looking at quite a few different places. She added that it could be startups in Silicon Valley, California or in countries such as India and China.
The company added that group revenue at the Singapore and Australia operations are forecast to grow at low single-digit rates this year while earnings before interest, tax, depreciation and amortization may be stable. Further, dividends from associates in Asia and Africa are expected to grow.
America Movil may acquire a 28% stake in KPN for $4.2 billion (Latin America, Europe)
Telecom group America Movil has reportedly made an offer to acquire 28 percent of Dutch telecom company KPN for $10.37 a share. According to reports, the deal valued to be $4.2 billion would enable America Movil to enhance its presence in the Europe market, so as to make up for the stagnant growth in its domestic market.
Carlos Garcia Moreno, CFO, said that America Movil is a long-term investor and they think if the company executes the strategy well, it will perform well. It’s a company that should benefit for the long term.
He added that KPN is the target for their first investment. Europe is facing some times which are economically challenging. They have a long-term investment horizon. They have taken their time. This one seems to make a lot of sense. Further, KPN is a solid company and in the long term seems to be a good return on investment. This is a market they do not know. Being closer to the action through the likes of KPN can give a better view for them.
Turkcell announces termination of Vivacom acquisition process (Turkey)
The leading mobile phone operator of Turkey, Turkcell, has announced that the Company has received notification regarding the termination of the sales process they had participated in for the 93.99% stake in the Bulgarian telecom operator, Bulgarian Telecommunications Company AD (Vivacom).
According to reports, Chief Executive Officer Sureyya Ciliv, said that Turkcell continues to evaluate acquisition opportunities for similar buyouts.
The company had 34.1 million subscribers as of June 30th, 2011.
The real reason behind Google’s acquisition of Motorola Mobility (USA)
Google’s mobile operating software – Android – has resulted in it controlling a dominant position in the mobile phone market, beating rivals Apple and Nokia to the number one spot. The acquisition of Motorola Mobility further earned Google access to over 17,000 patents, enabling the internet giant to protect its Android software from patent infringements.
A report by CNET offers an insight into the possible opportunities offered by such a merger to users. As per the report, this deal may enable Google to be the first to offer smartphone devices that completely replace a user’s personal computer (PC).
In terms of smartphones, Apple and Samsung offer extremely competitive services. However, if Google was to make the jump towards a functioning PC on a mobile phone, Apple could find itself in a lot of trouble.
The report highlights the massive appeal such a gadget would offer business customers. Most companies are moving business apps to either the cloud or private browser-based apps. Webtop-enabled Android devices — if they are well-orchestrated — could take a big bite out of the corporate sales of Windows.
While the PC supported smartphone sounds very impressive, Google still has a long distance to cover before it achieves this feat.
Batelco aims to make an acquisition in 2012 (Bahrain)
Bahrain Telecommunications Co (Batelco), whose attempt to buy a stake in Zain Saudi failed last year, aims to make at least one acquisition in 2012 to offset falling domestic revenue, as reported by Reuters. As per the report, the former monopoly has reported declining profits in six of the past seven quarters, caused by stiffening competition from rival domestic mobile operators.
Mohamed Isa al-Khalifa, Batelco group chief executive said that the key is to increase scale. The report reveals that he said they are coming from a very small market and can only do so much in their own market. They want to grow their international operations and compensate for any potential loss in revenue in the home market.
Khalifa said Batelco’s target was to make at least one acquisition in 2012. He said that they are working on some, but he can’t promise anything.
In February, Batelco agreed to sell its 43 percent stake in Indian affiliate S Tel for $175m, a move which should free up some cash for a potential deal. The company teamed up with Kingdom Holding for a 25 percent stake purchase in Zain Saudi last year but the deal failed due to disagreements with the indebted Saudi telco’s banks.
As per the report, Khalifa added that they are focusing on the MENA region – they have built a cluster around Bahrain and would like to grow this cluster. He said that Batelco, with a market value of around $1.7bn, has cash and bank balances of $286m, according to its 2011 annual report, and the firm could leverage its balance sheet to $1bn or more for acquisitions.
Ericsson closes the acquisition of Nortel’s Multiservice Switch business
Ericsson has completed the asset purchase agreement to acquire Nortel’s Multiservice Switch business. This acquisition gives Ericsson access to a strong product portfolio and installed base in the data segment while ensuring the supply of the platform for the recently acquired CDMA and GSM units.
“We are gaining a solid business with a significant installed base and technology that complements our existing Ericsson portfolio. In key locations around the globe, we grow our data capability with experienced and talented people” said Rima Qureshi, senior vice president and head of business unit CDMA Mobile Systems.
An important part of the CDMA ecosystem, the Multiservice Switch business offers the sale and support of data networks and switching platforms for core networks within the wireless and carrier voice divisions, previously acquired from Nortel. The Multiservice switches, to be called PPX henceforth, serve a valuable need for a multiplicity of services that the backbone network provides today for our customers.
Today’s closing follows the announcement on September 25, 2010, that Ericsson was entering into an asset purchase agreement for substantially all of the assets of Nortel’s Multiservice Switch Business.
The former Nortel Multiservice Switch staff will be integrated into the Ericsson group in business unit CDMA Mobile Systems over the coming months and will work under the Ericsson brand effective today. Former Nortel customers gain a stable partner committed to the ongoing evolution of their networks and the assurance of a seamless business transition.
SEB Enskilda acted as Ericsson’s sole financial advisor in the transaction.
US orders Huawei to clear acquisition of domestic start-up
US authorities have taken the bizarre step by ordering Huawei to clear the acquisition of a domestic start-up, despite the deal closing in May.
Security officials at the Pentagon consider that the purchase of 3Leaf should have been cleared by the Committee on Foreign Investment in the US (Cfius), which taxes the national security implications of acquisitions by overseas firms.
According to reports, Huawei paid $2 million for 3Leaf’s staff and IP, but didn’t seek approval because the deal didn’t cover all of the start-up’s assets.
3Leaf is a Bay area startup whose technology combines servers together to allow them to scale.
As per reports, the committee could order Huawei to sell 3Leaf or place restrictions on its use of the US firm’s technology if it finds the deal compromises national security.
Security fears over Huawei’s links to the PLA have hampered the Chinese vendor’s efforts to crack the US market. It has repeatedly denied any military links beyond the fact that CEO and co-founder Ren Zhengfei is a former PLA officer.
The vendor has hired lobbyists in Washington to help win government backing for its equipment, but has yet to win a major contract with any tier-one carriers in the country. Rival ZTE has been similarly hindered by security concerns in the US.
The firms were excluded from Sprint Nextel’s $7 billion 4G equipment tender earlier this month, despite submitting the lowest bids.
Microsoft in talks to Acquire Adobe to unite against Apple
If rumors are to be believed, Microsoft CEO Steve Ballmer and Adobe CEO Shantanu Narayen were in a meeting to discuss over Apple and its control of the mobile phone market and how the two companies could collaborate in the battle against Apple. A possible acquisition of Adobe by Microsoft was among the options.
Formally, Adobe and Microsoft have been opponents with challenging software and the companies became really aggressive in 2007 when Microsoft began promoting Silverlight, its software plug-in for the Web that directly competes with Adobe Flash.
According to sources, the two companies had talked about the obstruction that Apple’s chief executive, Steven P. Jobs, had placed on Adobe’s Flash software for its hand-held devices and whether a partnership by Adobe and Microsoft could fend off Apple, which continues to grow at juggernaut speeds. Microsoft had courted Adobe several years ago. But the deal never moved past informal talks as Microsoft feared that the Justice Department would most likely block the acquisition on antitrust grounds.
The source noted that Microsoft was the dominant force in technology, Google and Apple were not the giants they are today.
Telefónica captures Vivo in US$6.11 billion
Telef³nica has acquired 50% stake in Brasilcel, owned by Portugal Telecom. As part of possession, Telef³nica has gained control of Vivo, which is almost 60% owned by Brasilcel.
As per the agreement with Portugal Telecom, Telef³nica paid the first installment of US$6.11 billion for the 50% stake acquisition. The remaining amount, up to US$10.18 billion, will be made under a schedule of payments, including US$1.35 billion on December 30 2010 and US$2.71 billion on October 31 2011.
Portugal Telecom can ask for the last payment to be paid on July 29 2011. Telef³nica will reveal a tender offer over the voting shares of Vivo, for a price equal to 80% of the price paid by Telef³nica to Portugal Telecom for each voting share of Vivo owned by Brasilcel.
France Telecom dismisses TeliaSonera acquisition rumors
France Telecom SA once again made it clear that it has no plans to acquire Swedish telecoms operator TeliaSonera AB.
According to the spokesperson for the company, there are rumors on the market that France Telecom is interested in a merger with TeliaSonera. They are totally unfounded. France Telecom showed interest in acquiring the Swedish operator in 2008, but no agreement was reached. The French company no longer has such plans.
