US companies express interest in Hondutel deal (Honduras)
Several US companies have reportedly expressed interest in making alliances with Honduran state-owned communications group Hondutel.
The information was revealed by the President of a telco workers union, who added that the American companies’ proposals to jointly provide services with Hondutel have met with opposition from certain quarters.
The approval of such projects would be framed in the Law on Public-Private Investment, although funding for the proposed projects would apparently come from the foreign companies.
In addition, the union representative stated that there was general concern amongst employees at the company over talks about a strategic partner for Hondutel, which have aroused suspicion of a privatization plan, which they as workers … are against.
Eircom in discussion over reorganizing its debt
Irish Telecoms Company, Eircom is in discussion over potential debt reorganization and notified that without action it could violate its bank agreements by next year so.
According to Peter Cross, chief financial officer, all options around the medium agreement question and the longer-term financial structure of the group. These included seeking a renegotiation of its US$4.195 billion debt with its banks, a debt swap or raising fresh equity from its shareholders. He declined to exclude the possibility of following the example of Wind Hellas, the Greek mobile phone operator, which moved its headquarters to London and used a prepackaged administration to wipe out more than US$ 1.271 billion of its unsecured bonds without losing control of the business. There was positive headroom on agreements, pointing to US$ 508.56 Million of cash on the balance sheet, US$177.996 million of cash flow and a kind outline of debt repayments, with US$ 128.411 million due by June 2011 and US$ 547.973 million by June 2014. None of this is about short-term liquidity or cash-flow; it’s simply about agreement rules.
His comments come as the company accounted a cry off in adjusted EBITDA of 3.3% to US$ 850.566 millions on revenues losing 8.5% to US$ 2.288 billion for the year to June 30.
The company slapped by the Irish recession. According to Paul Donovan, chief executive, at this time, the company is not seeing any possibility of recovery, so it would be wrong to predict any substantial improvement around the contour.
Eircom, as a former state-owned company, has 70% of the fixed-line market in Ireland. But after five owners since privatization in 1999, the new owners, Singapore Technologies Telemedia, face one of the highest debt levels of any European telecoms company at 5.5 times earnings before interest, tax, reduction and paying off.
Oger to pay 20% premium for Turk Telecom
www.WirelessFederation.com/news: In order to secure the divested shares in fixed line incumbent Turk Telekom (TT) should the government choose to sell part of its stake this year, 20% premium would be paid by Dubai-based Oger Telecom.
Communications Minister Binali Yildirim revealed that the government was considering a second public offering to sell part of its remaining 31.7% stake in the operator. The state is expected to float a 15%-20% stake via the public offering if it decides to go ahead with sale.
Oger already holds a 55.8% stake in the operator, having paid USD6.55 billion for the stake in a 2005 privatization.
Etisalat may get Libyan license by the year end
www.WirelessFederation.com/news: UAE-based telco Etisalat hopes to receive Libya’s third GSM license by the end of the year 2009. The company is also interested in expanding its service to the Lebanese market.
According to Jamal al-Jarwan, head of Etisalat’s international investments, the company is waiting for privatization in Lebanon and would like to take a majority stake in one of the existing two operators there.
The license tender was launched by Libya’s General Telecommunication Authority on February 16, 2009. The result was supposed to be announced in following June, however, interest in the concession only gathered pace in July.
Australia won’t be forced to sell Telstra shares-Costello
(Associated Press via NewsEdge) The Australian government will not be forced to sell its remaining 51.8% stake in Telstra, a senior minister said.
“If the conditions don’t suit then we’ve indicated that the government’s Future Fund … would be a very suitable vehicle to hold that shareholding,” Treasurer Peter Costello told a media briefing in Canberra, referring to a fund to finance future federal debts including civil servants pensions.
Telstra shares have dropped 4.7% since August 9, the day before the Melbourne-based company released its full year results that showed a 26% fall in profit.
Various government leaders have indicated a decision on whether to proceed with the full privatization of Telstra will be made within weeks.
“We will deal with the government’s shareholding at a time which is in the interests of other shareholders and the Australian taxpayers,” Costello said.
“We are not a forced seller; we are not selling this to get the money, we don’t need the money,” he added.
The government’s plan to sell its remaining Telstra stake, a process known as T3, has been dealt a series of blows in the last week.
As well as Telstra’s disappointing profit result, the company has warned it may cut its earnings guidance after an unfavorable ruling from the regulator on what it can charge its competitors for access to its network.
The sale was then expected to make A$30 billion ($23 billion) in Australia’s largest ever privatization.
Source- http://www.telecomasia.net.
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