Nokia looking to sell luxury division Vertu (UK, Finland)
Finland based handset maker Nokia is in advanced talks to sell its UK subsidiary Vertu to private equity group Permira, according to a report by FT. As per the report, it is expected that the deal will raise $265.19 million for Nokia.
The report claimed that people familiar with the talks were cited as saying Goldman Sachs was advising to oversee the sale, but said the outcome was not yet certain.
As reported by Wireless Federation earlier, Nokia first hinted at a potential sale of its luxury division in December. The companies Vertu and Permira are yet to make an official statement regarding the same.
Vodafone selling China Mobile Stake for $6.6Bn
Vodafone is selling its 3.2% share in China Mobile for US$6.6billion as it wants to dispose off its minority investments.
Vodafone will return about 70% of the proceeds to shareholders in the form of a share buyback, with the remainder used to reduce the UK group’s net debt, which stands at US$51.398 billion.
Vodafone is ready to sell its entire stake for US$6.63billion before tax to banks led by Goldman Sachs, Morgan Stanley and UBS. The banks will sequentially sell the stake on to institutional investors.
According to Vodafone chief Executive, Vittorio Colao, today’s transaction achieves a near doubling of Vodafone’s original investment in China Mobile and combines the stated portfolio strategy with ongoing cooperation with China’s leading telecommunications company.
Although Vodafone’s investors will almost certainly welcome the sale of its China Mobile share, but they are mainly focused on the UK group’s 45% shareholding in Verizon Wireless, the leading US mobile operator.
Palm puts itself for sale after running into loss
www.WirelessFederation.com/news: It has been reported that handset manufacturer, Palm which has been running into loss since long has put itself up for sale and will start seeking bids later this week. The company is working with Goldman Sachs and Frank Quattrone’s Qatalyst Partners to find a buyer.
China’s Lenovo Group and Taiwan’s HTC might make an offer to buy the company. The company has a current market valuation of around US$900 million.
According to Frank He, a technology analyst at BOC International Holdings Ltd, the shares have gone down a lot and the company may become attractive to anyone looking for a turnaround play and Palm still has quite a good brand in the U.S. market, and some strong technology.
Zain- Bharti deal might be reversed due to Econet (Nigeria)
www.WirelessFederation.com/news: With an aim to resolve Zain’s Nigerian unit ownership situation, Econet Wireless International has expressed its intentions to get Zain’s deal with Indian firm Bharti Airtel reversed.
According to Goldman Sachs analyst Hugh McCaffrey, Econet management intends to reverse the transaction and exercise its right of first refusal on the 65% stake in the Nigerian asset, however, an issue that may potentially affect the closure of the transaction is the ownership dispute from minority shareholders of the Nigerian unit.
The ownership dispute might lead to the surrender of ownership rights in the Nigerian asset by Indian telco, Bharti Airtel. Econet has already announced that Zain’s Nigerian assets should not be counted for sale until the shareholding is resolved.
Goldman Sachs has also cited that Econet management would also likely claim damages against Zain and if successful, in a worst-case scenario, Bharti would have to relinquish ownership rights over the Nigerian assets and perhaps renegotiate the amount it paid to Zain to acquire its African assets.
MetroPCS hires bankers to advice on Leap acquisition (USA)
www.WirelessFederation.com/news: Investment bankers have been hired by US-based pre-paid specialist MetroPCS to advise it on the potential acquisition of Leap Wireless. Earlier it was publicly admitted by Leap Wireless that it has appointed Goldman Sachs and Morgan Stanley to advise it on a sale as it looks for potential suitors.
In the past also, moves were prepared by MetroPCS for Leap making a USD5.5 billion all-stock takeover offer in September 2007, offering 2.75 of its own shares for every Leap share.
However, the offer was rejected by the board members of Leap Wireless saying it undervalued the company. JP Morgan Chase and Co has been approached by MetroPCS this time in an effort to facilitate a mutually agreeable deal this time around.
US telco Leap Wireless hires advisors for potential sale
www.WirelessFederation.com/news: Goldman Sachs and Morgan Stanley have been hired by US cellco Leap Wireless to advise the operator on a sale as it looks for potential suitors. A number of potential buyers like MetroPCS, Verizon, and AT&T have been approached by Leap in the recent days.
MetroPCS made a USD5.5 billion all-stock takeover offer for Leap in early September 2007, offering 2.75 of its own shares for every Leap share. However, Leap rejected the offer in mid-September, citing that it undervalued the company.
New bonds issued by Virgin media to settle debt
www.WirelessFederation.com/news: In a bid to refinance its main bank debt, €689 million worth of secured bonds will be issued by Virgin Media. Placement which has an eight-year maturity will be handled by JPMorgan and Goldman Sachs.
£3.1 billion (€3.44b) debt piling by 2012 has been anticipated by the UK cable carrier, as part of its net debt, totaling more than £4 billion. Heavy investment by Virgin Media in its broadband network in a bid to compete with British Sky Broadcasting and BT lead to the accumulation of such a huge debt.
Multi million pound tranches of bonds has been gradually issued by the carrier, the latest in November for the equivalent of £715m.
Vice-President of China mobile fired for economic problems
www.WirelessFederation.com/news: China Mobile, one of the world’s biggest mobile carriers sacked its Vice- President for serious economic problems. Zhang Chunjiang, who was considered to be the public face of the corporate governance, faced this setback because of the increased transparency among some of the world’s largest companies.
According to the Hong Kong- listed entity a meeting will be called for deciding whether he is to be removed from his job as a vice-chairman of China Mobile. A state news agency informed that Chunjiang was also being investigated by the anti-graft body for suspicion of serious violation of discipline.
Zhang became a part of China Mobile in 2008 after Beijing revamped the telecommunications industry. Before that we worked as chairman of another carrier, China Necom Group considered to be a pioneer of corporate governance in China.
Zhang has so far been in the good books of many prominent people including former Goldman Sachs president who also worked with Zang in Netcom. Sachs had praised him for his efforts to balance the interest of the ruling party with those foreign minority shareholders in state corporations.
Zang is among the most high-ranking officials caught up in the Chinese crackdown on corruption.
Vice-President of China mobile fired for economic problems
www.WirelessFederation.com/news: China Mobile, one of the world’s biggest mobile carriers sacked its Vice- President for serious economic problems. Zhang Chunjiang, who was considered to be the public face of the corporate governance, faced this setback because of the increased transparency among some of the world’s largest companies.
According to the Hong Kong- listed entity a meeting will be called for deciding whether he is to be removed from his job as a vice-chairman of China Mobile. A state news agency informed that Chunjiang was also being investigated by the anti-graft body for suspicion of serious violation of discipline.
Zhang became a part of China Mobile in 2008 after Beijing revamped the telecommunications industry. Before that we worked as chairman of another carrier, China Necom Group considered to be a pioneer of corporate governance in China.
Zhang has so far been in the good books of many prominent people including former Goldman Sachs president who also worked with Zang in Netcom. Sachs had praised him for his efforts to balance the interest of the ruling party with those foreign minority shareholders in state corporations.
Zang is among the most high-ranking officials caught up in the Chinese crackdown on corruption.
