Reliance Comm increases $255 mln via ECB for 3G (India)
Reliance Communications has raised $255 million of external commercial borrowing (ECB) to partly refinance payments made for acquiring 3G, air waves.
According to the company, this loan is funded by a consortium of banks led by Australian and New Zealand Banking Group, BNP Paribas, Credit Agricole Corporate and Investment Bank, DBS Bank Ltd and Intesa Sanpaolo. Reliance Communications won bandwidth for 13 service areas in a government-led auction in May last year for US$1.88 billion.The refinancing extends the tenure of the borrowing as well as lowering the interest costs for the company.
Last month, Reliance Communications signed a memorandum of understanding with China Development Bank to refinance the $1.33 billion paid for 3G spectrum to the Department of Telecommunications. The MoU also covers financing of up to $600 million towards equipment and services to be procured from Chinese vendors such as ZTE Corporation and Huawei Technologies.
Telecom Italia’s future debated by its shareholders
www.WirelessFederation.com/news: Discussions regarding the future of the struggling Telecom Italia have been commenced by the shareholders of the company including financial groups Mediobanca, Intesa Sanpaolo and Generali and they have the possibility of a Telefonica merger on the table.
However, the opinions seem to be divided with some calling for a merger with an industrial partner, and others hoping Telecom Italia will stay independent.
Telecom Italia’s sagging stock price has disappointed the shareholders who are hoping to reach consensus for merger before the northern summer.
Argentine antitrust body’s ruling appealed by Telco shareholders
www.WirelessFederation.com/news: An appeal has been filed by the Telco consortium shareholders against Argentinae government’s recent decision forcing them to sell their indirect stakes in Telecom Argentina. 23.6 percent of Telecom Italia is owned by Telco consortium which in turn owns about half of Telecom Argentina.
Spain’s Telefonica, Pirelli, Mediobanca, Intesa Sanpaolo, Assicurazioni Generali and Sintonia are the other partners involved with Telco. Telecom Italia was ordered by Argentina’s National Commission for the Defence of Competition (CNDC) to sell its stake in Telecom Argentina to avoid a telecommunications monopoly.
As per the decision, Telecom Italia will have to divest holdings by February 25 or face government intervention in the sale of its stake in Telecom Argentina. According to Telecom Italia, each and every ruling reached thus far by the Argentine authorities concerning the divestment of assets is illegitimate and unjust.
Telefonica’s increased control on Telecom Italia dismissed by the shareholders
www.WirelessFederation.com/news: Shareholders of Telefonica in the Telco consortium that holds a major stake in Telecom Italia rubbished the reports of the plans to sell their shares to Spanish incumbent. The dismissal came amidst the reports in an Italian newspaper that the three shareholders have agreed to sell their shares in the Telco group to Telefonica, although no formal agreement for the same has been reached.
It was also reported that Assicurazioni Generali, Intesa Sanpaolo and Mediobanca would sell for either €2.2 per share or €2.6 per share. While the former is the price following the group’s recent devaluation, the latter is the price initially written on their balance sheets when they joined Telco in 2007.
If the report would have been true, Telefonica could have gained the control of Telco’s stake in Telecom Italia, which now stands at 22.4%, following Benetton’s withdrawal last year.
Government hoping for domestic buyer for Telecom Italia
Telegeography writes…The Italian government is hoping a group of local investors will beat AT&T and Am©rica M³vil to win a stake in Telecom Italia holding company Olimpia. While the government’s official line is that the ‘decisions of the [Telecom Italia] board are sacred’, privately many politicians are expressing concern that ownership of the country’s largest telephone networks could be transferred to foreign firms. Communications Minister Paolo Gentiloni has already voiced his own ‘very great concern’ about the proposed EUR4.5 billion deal, under which AT&T of the US and Am©rica M³vil of Mexico each hope to acquire one-third of Olimpia, a company which holds 18% of Telecom Italia. The stake is being sold by Italian industrial group Pirelli, which holds 80% of Olimpia in total. A group of Italian banks, including Intesa Sanpaolo and Mediobanca, have already expressed an interest in the Olimpia shares and the government is thought to be keen to see a renewed bid following the EUR2.92 per share offer from the American telcos. The Italian government has previously scuppered a deal which would have seen a Spanish firm take over Italy’s highways agency Autostrade.
