Hutchison Whampoa’s $2.6 billion bid for Eircom rejected (Hong Kong, Ireland)
Telecommunications company Hutchison Whampoa Ltd.’s bid of $2.6 billion for Eircom Group, the Irish phone company in supervised credit protection, has been rejected, according to a report by BN.
As per the report, the cash offer by Hutchison’s Three Ireland unit was rejected by the country’s court-appointed examiner because there were too many conditions attached, and that Three Ireland is working on a revised bid.
Further, it is said that Goldman Sachs Group Inc. is advising Hutchison, while, Morgan Stanley is Eircom’s adviser.
Everything Everywhere appoints Morgan Stanley to sell spectrum (UK)
Mobile operator Everything Everywhere, which operates the T-Mobile and Orange brands in the U.K, has appointed Morgan Stanley to sell spectrum that could be used to roll out 4G mobile broadband services in the U.K. ahead of other operators, as reported by FT.
As per the report, Olaf Swantee, chief executive of Everything Everywhere, said that whoever they sell to has to be approved by the competition authorities. The test is someone who can provide genuine competition.
The spectrum could be priced at around US$634.7 million, and are likely to be of most interest to leading operators, although other large technology groups could also be interested.
Vodafone and Tata ask for more time for C&W bid (UK, India)
Vodafone Group Plc and Tata Communications Ltd. are seeking to extend the deadline set for March 29 to bid for Cable & Wireless Worldwide Plc (C&W), saying they need more time, as reported by the Sunday Telegraph.
As per the report, UBS AG representing Vodafone, and Standard Chartered Plc along with Morgan Stanley, representing Tata, will ask for a later deadline because C&W hasn’t provided enough information to the bidders yet.
The companies Vodafone, Tata Communications and Cable & Worldwide are yet to make an official statement regarding the same.
Singtel prices $600 mln notes at 4.5% (Singapore)
Singapore Telecommunications (SingTel) has announced that it has priced its $600 million 10.5-year notes at 4.5%, with the offering more than three times oversubscribed.
The note is part of the company’s $7.85 billion Euro Medium Term Note programme and will be used for general corporate purposes, including repayment of SingTel’s maturing debts.
BNP Paribas, HSBC and Morgan Stanley acted as joint lead managers and bookrunners while Australia’s ANZ was co-manager.
JPMorgan to offer IPads to investment Bankers
JPMorgan Chase & Co. will give its investment bankers iPads to offer an additional mobile tool as Apple Inc. expands its domain to Wall Street, intimidating Research in Motion Ltd. in a market it usually conquered.
According t reports citing two managing directors at New York-based JPMorgan, the company believes there are real benefits in the working environment that can be realized using this device – as well as the personal productivity and enjoyment that come as part of the package.
Apple is building on its momentum in the tablet space, controlling its 95% market share to expand from its traditional consumer base into the corporate market as RIM readies a rival device, the BlackBerry PlayBook.
RIM is trying to catch up with Apple as banks including Morgan Stanley and Credit Suisse Group AG unveil applications for the iPad and Citigroup Inc. and Bank of America Corp. consider letting employees use iPhones instead BlackBerry.
As per the company’s previous e-mail, JPMorgan, the second-largest U.S. lender by assets behind Bank of America, will distribute iPads free of charge to all associates in its global investment banking division. Employees will get to keep the device as long as they remain at the unit until the pilot program ends on May 1, 2011.
Telesat hire financial advisers for $7 Billion sale (Canada)
If sources are to be believed, Canadian satellite firm Telesat Holdings Inc. hired three financial advisers to help sell the company for $6 billion to $7 billion.
According to sources, closely held Telesat brought in JPMorgan Chase & Co., Morgan Stanley and Credit Suisse Group AG on Nov. 17 to start a formal sales process and offer so-called staple financing to interested buyers.
As per sources, while an auction hasn’t officially begun, Ottawa-based Telesat has been approached by Intelsat SA. Intelsat, owned by private-equity funds BC Partners Ltd. and Silver Lake, has hired Bank of America Corp. as an adviser and may name others to pursue a bid.
Telesat is co-owned by New York-based Loral Space & Communications Inc. and Canada’s Public Sector Pension Investment Board. Telesat calls itself the world’s fourth- largest satellite company.
Sources added that the sale may fetch 8.5 times to 9.5 times Telesat’s projected earnings before interest, taxes, depreciation and amortization of about $700 million next year. Telesat is being advised by JPMorgan, while Loral, a designer and maker of satellites, is working with Credit Suisse and the pension fund is being represented by Morgan Stanley.
GTL Infra, Quippo considering Saudi Tele’s tower business: Sources (India, London)
If sources are to be believed, GTL Infrastructure and Quippo are among those shortlisted to buy a stake in Saudi Telecom’s tower business and final offers are likely to be made within the next few weeks.
Saudi Telecom’s tower business is valued between US$1 billion and US$1.5 billion, and it was not yet decided whether the carrier was selling a 49% or larger stake. State-controlled Saudi Telecom has about 10,000 telecom towers.
When asked whether Quippo is bidding for Saudi Telecom’s tower arm Sunil Kanoria, director of Quippo, a telecom infrastructure company told that they working on it.
According to a GTL Infra spokesman in Mumbai, while the company continues to pursue several opportunities for mergers and acquisitions, it would be premature at this stage to comment on any specific target.
Several sources claimed that Morgan Stanley is managing the sale process for Saudi Telecom’s tower business. Towers are masts that mobile operators use in transmitting wireless signals.
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.
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.
