AT&T beats Sprint with a higher cash offering (US)
If rumors are to be believed, T-Mobile’s sale discussions were not a sudden decision but that these talks had been going on for about three months, without a single leak to the media.
According to the report, AT&T had been in talks for sometime with T-Mobile’s parent company, Deutsche Telekom and finally won the deal because it was willing to offer a higher cash component for the purchase price. AT&T was also willing to offer a higher than average breakup fee if the sale was cancelled. Possibly, regulatory requirements made it undesirable to complete the deal for them.
According to sources, knowing the deal would face regulatory obstacles, Deutsche Telekom negotiated with AT&T to pay the $3 billion and give it rights for some wireless spectrum if the deal could not be made.
According to Deutsche Telekom Chief Financial Officer, Timotheus Hoettges, the breakup fee was very important to them in the negotiations. In the intensive discussions with lawyers and economists, they concluded that they could be optimistic that the company could get regulatory approval.
As per sources, Sprint Nextel was also unaware that AT&T was talking to Deutsche Telekom until just before the final public announcement was made.
Deutsche Telekom says all options open in US (Germany)
Deutsche Telekom AG’s Chief Financial Officer has stated that all options will remain open for the company in the U.S., as shares rose on speculation of a tie-up with Sprint Nextel Corp in the U.S.
The manager was responding to reports that Deutsche Telekom has held talks to sell its T-Mobile USA unit to Sprint Nextel in exchange for a major stake in the combined entity, citing people with knowledge of the matter.
Telekom CFO Tim Hoettges listed various possibilities for the company’s U.S operations including a sale of the entire business. He added bringing in a partner, an initial public offering, or network co-operation also remain as options.
Swisscom appoints new HR Head (Switzerland)
Swisscom has appointed Hans Werner as its new Head of Human Resources and Executive Board Member.
He is currently International HR manager at Schindler Holding AG and has also worked at Swiss Re, where he was the head of Global Human Resources.
According to Swisscom, Werner will take up his new post in autumn 2011. Until then, the HR department will continue to be headed in the interim by Chief Financial Officer, Ueli Dietiker.
AT&T CFO Lindner to step down in June
AT&T Inc has announced that its Chief Financial Officer, Rick Lindner will retire June 1 and will be replaced by Controller John Stephens.Lindner has served as CFO since 2004.
Stephens, a 19-year veteran of the telecommunications company, has been AT&T’s controller since 2001.
According to AT&T Chief Executive Randall Stephenson, Rick and John have worked together closely for more than 15 years, and they expect a seamless transition.
In January AT&T, the No. 2 U.S. wireless carrier behind Verizon Wireless, projected earnings growth for the year that was less than analysts’ expectations. AT&T’S investors have been unnerved since word emerged that Verizon would begin carrying Apple’s popular iPhone, ending more than three years of U.S. exclusivity for AT&T.
AT&T, which is heavily dependent on iPhone, forecast 2011 earnings per share growth in the mid-single-digit percentage range.
Verizon plans to end unlimited data packages by this summer (USA)
A Verizon executive has hinted that the company will end its unlimited data plans for iPhone as early as the middle of this summer while fueling the speculation that Apple will release an updated Verizon iPhone later this year.
According to reports, Verizon Chief Financial Officer, Francis Shammo made the remarks at an investor’s conference. According to Shammo, the carrier will probably transition to tiered pricing data plans in the mid-summer time frame.
Shammo added that Verizon had kept the unlimited plan for iPhone launch because it didn’t want to put up a barrier for the consumers looking to try out the handset.
Deutsche Telekom to start US mobile towers sale in Q2 (Germany)
Deutsche Telekom AG’s Chief Financial Officer, Timotheus Hoettges has announced that the company has decided to sell its U.S. cellular towers, aiming at freeing up growth capital. The company will begin the sale in the second quarter.
Deutsche Telekom wants to sell and lease back its 7,000 cellular towers in the U.S. in a transaction that could generate a single digit billion dollar profit. The German telco’s competitors have already conducted similar deals.
According to Deutsche Telekom’s CFO, the transaction makes sense as it can generate money for profitable growth directly in the U.S. rather than injecting money from Germany in the market, which has showed continued weakness since 2008.
Deutsche Telekom is the smallest of the four major nationwide mobile network providers in the U.S. and has to buy new spectrum in the future ahead.
Hoettges excluded a sale of Deutsche Telekom’s U.S. operations.
France Telecom faces increased competition
France’s biggest phone company, France Telecom SA has announced that it faced a drop in profit margins this year as it prepares for a new mobile-phone rival in its home market in 2012.
The company has reported profits which were slightly better than analyst expectations. The company stated that it sees a 1% point slide in 2011 margins for earnings before interest, taxes, depreciation and amortization.
According to telecommunications sales specialist, the risk profile in both fixed and mobile is increasing in the French market.
Chief Executive Officer, Stephane Richard. is looking to guard market share and margins at home, where Iliad SA will start offering mobile services next year. France accounted for more than 51% of revenue for the former state-owned monopoly last year.
According to the Chief Financial Officer, Gervais Pellissier, the preparations for the fourth entrant will put some pressure on mobile prices in France in 2011.
According to the company, in 2010, EBITDA declined to US$21.5 billion from 21.21 billion a year earlier.
Globe Telecom seeks $160.7 mln for refinancing and CAPEX (Philippines)
Globe Telecom is seeking US4160.7 million funds from Banco de Oro Unibank (BDO) for the refinancing of maturing debt obligations and for 2011 capital expenditure projects.
In a filing, the telco stated that it was looking to take advantage of the banks’ current low interest rates.
According to Globe Telecom’s Chief Financial officer, Albert De Larrazabal, they intend to use the BDO facility to fund their capital expenditure requirements this year in 2012. The current low interest rate environment allows us to replace these loans with cheaper debt, generating savings for the company.
According to Globe president and CEO Ernest Cu, in 2010 Globe’s total CAPEX reached around USD500 million. A similar amount is being planned for this year.
Globe Telecom secures loan from Metrobank (Philippines)
Globe Telecom, had signed a US$92 million term loan facility from Metropolitan Bank and Trust Co. (Metrobank) to cover a portion of its outstanding debts and fund CAPEX projects for next year.
In a disclosure to the Philippine Stock Exchange, the company claimed that the loan facility is payable for five years.
According to Alberto de Larrazabal, Globe Telecom Chief Financial Officer, the firm wanted to take advantage of the current favorable interest rate environment. There is an opportunity for the company to generate savings and at the same time lengthen their debt maturity profile. The funds will be used to prepay US$244278 in debt that will mature in 2012. The balance will be used to fund their capital expenditure requirements in 2011.
As per the company, the term loan facility with Metrobank was the third loan signed by the company this year. In the first quarter, the firm inked a US$162852 loan with Allied Bank.
Google executives to get pay hike
Google Inc. has increased the stock awards and bonuses of some of its executives.
In a regulatory filing, Google has settled to give equity awards worth $20 million each to Chief Financial Officer Patrick Pichette and Head of Global Sales Nikesh Arora. Stock awards to executive officers will be made annually from now on, rather than every other year, the company’s previous practice.
As per the filing, Google is raising compensation as it faces more competition for talent from rival Internet companies such as Facebook Inc. It is also raising performance bonuses for executives to 250% of base salary from 150%.
Alan Eustace, Senior Vice President of engineering and research, will receive a $10 million equity award, while Jonathan Rosenberg, Senior Vice President of product management, will get a $5 million award.
