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Well that was short lived - back to the usual today - back towards sub £1 - well it was exciting for a couple of days .
..dippable...8 letters
Vodger.....its this months Scrabble game, .....best i can get is ..........Taboo....5 letters
Dan, that looks like a line from vogon poetry.
Dont forget lric and lrac. Long run incremental cost/ average cost
(REF ARPU) WDPTIPEIOTALOB. ? WTOO ?
ARPU....average revenue per user
vodger. Of course the merger is about running the combined operation more efficiently. Can they do it? Who knows? I think/hope so. As long as they get there ARPUs right? Whatever the **** an ARPU is? Sounds good ?? I reckon if they & us all speak in plain English instead of a load of ARPU nonsense, that might help.
Think I read 3 want VOD to use $6Bn for its 51%...
3 net assets at 31/12/2020 were c.£7.1Bn including c.£1.7Bn creditors (interco, lease liabilities etc)
My take is the merger is really about running the combined operation more efficiently as ARPUs under pressure and underpins VOD ability to continue to generate distributable fcf (dividends). I assume there will be mast sharing/ high street shop branding synergies/ savings etc
ARPU will get an uptick in april with inflation indexation..aimho
Thanks mole for digging up that info! Perhaps Three will take on some off vod's massive deb't? In return for there almost 50% ownership. I assume this merger is just for the U.K. vod, not the whole of vod, so a very small amount? We could always just wait I suppose? But where is the fun in that?! Come on mole, cards on the table,are you tempted to buy? £2 shop ere we go. I wonder what the £1 shop man thinks? No, perhaps best not to ask??
More details will emerge, but it involves debt somehow rather than cash, and VOD just has a way of attracting the stuff.
Guardian explanation is about the most thorough I can find
'The companies said there would be no cash component involved in the deal – Vodafone has twice the customer base of Three – with the relative ownership structure set to be achieved through a “differential leverage contribution” involving debt. Vodafone has about 18 million mobile subscribers compared with Three’s 9.3 million.'
Mulder. If criminals are short selling vod when the sp is rising, as it has for the last 2 days,they are losing money,so not very good criminals are they? Perhaps you should ask Scully.
Ftse has steadily been rising all day and we have been steadily falling all day - at least we finished positive but pretty depressing really on the best Ftse day in a long time
So clear for all to see.
Similar to what Tiger hedge fund did with Tesco.
Is it actually going to finish positive or do it usual drop down to close - a shame on a good day on the ftse
Doyen Dan your wishes are granted...as long as Vod sp/dividends and i dont fall im happy with that ..but are sure its not Dan Tummler ? , your a top gent and may SP keep rising ..atb
Hi mole. I read the r.n.s.. I not sure why you think vod will take on more deb't though? They may do, but a differential leverage contribution at closing, doesn't mean that does it? I suspect it means as vod's deb't is probably more than Hutchinson's, it will remain so?
Gearing up to sell Spain
https://www.reuters.com/business/media-telecom/vodafone-hires-evercore-sell-stake-spains-fixed-network-cinco-dias-2022-10-04/
for this merger to proceed what do people think happens to the sp.
bargain at these prices.
The rns says no cash deal
Some valid points there fleccy.
"This for me makes it difficult to understand the 51% to 49% proposed split of the combined UK operations. Should be more like 75% to 25% imho, perhaps Vodafone’s cable networks are not part of the combination but if so why are Vodafone promoting the potential to speed up broadband rollout as a benefit of such a merger?"
Hard to know how the deal will be structured, but the number crunchers will work hard to ensure all the different parts are valued correctly. Vodafone also own, or partner, various subsea assets around the World, like Apollo in Cornwall, I assume these won't be part of the deal. Vodafone UK's assets are likely more numerous and valuable than Three UK's assets, so a deal might involve Hutchinson taking current debt onto their own books, or injecting cash into the new company to meet the valuation differences between the two entities.
"Virgin-O2 merge would be a better comparison"
Nope, Virgin Media was a cable operator and O2 a mobile company. The VMO2 combination is directly comparable to the BT/EE combination, the VOD/Three combination is a combination of mobile entities. Vodafone UK took over Cable and Wireless Worldwide around 2012/13, so the Vodafone UK company structure already mirrored the BT /EE structure, Vodafone UK merging with Three UK would be no different to BT/EE or VMO2 merging with Three UK.
Whilst both Vodafone and Three have millions of customers for their respective mobile networks only Vodafone has cable and fibre infrastructure, and very extensive it is too. This for me makes it difficult to understand the 51% to 49% proposed split of the combined UK operations. Should be more like 75% to 25% imho, perhaps Vodafone’s cable networks are not part of the combination but if so why are Vodafone promoting the potential to speed up broadband rollout as a benefit of such a merger???
Virgin-O2 merge would be a better comparison