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Anything to do with Vod or U.K. plc generally more a case of not fiddling while Rome burns as arguing who will hold the violin.🤡🤡😂😂. Terminal. Poor old labour will inherit just a debt pile and shagged out brexit wrecked economy and there will be nothing much they can do. When Blair got in the economy took off for 8 plus years and sterling as well, but without rejoining the EU just can’t see how U.K. doesn’t keep tanking. I see 28 billion valued Flutter now moving listing to NY. Ftse just doomed and shxt like Vod will end up being owned by bondholders, shareholders fxcked I’m afraid.
Why are you guys going on about an offer ?
THERE WAS NO OFFER
ILIAD HAS NEVER MADE ANY OFFERS
You are never going to get anywhere near "offers" if you cannot even agree and move on further with a Proposal
This was just a Proposal , way behind any stage of a formal offer or even offer agreement
Even 2 years ago there was NO Offer ... then it was just an approach and a "preliminary indication of interest" which also got rejected by VOD
Hmmm ..before today's announcement! :/
Thats a rubbbish statement.. You only completely reject if there better firm offers. According to media there was none apart from Iliad. This may definitely make it fall below 65p. Comparing to BT, Vodafone need to go close to 60s range on this type of news..
145 buy rating today
Can see this falling down to the 50's.....what a state...theres no way the dividend will be held adding further pressure....BT not much better...let's hope Margherita and Alison will help steady these 2 ships...as they are being hammered and the short interest is rising on these equities
IMO
VOD would have weighed up the perceived "under valuation cost" (made that phrase up), EG say they value the Business £Xb more than the offer. Then they would see how much capital they are destroying in Italy by staying in, EG £Yb per year x Z years. What other factors might improve Y, what the real time value of money X is. Bear in mind as well for the merger years, VOD would still be contributing CapEx that is below WACC, so still destroying shareholder value, with probably years of future value given to Illiad. EG they spent £XB on investment expecting to get £YB of cash on that over say 5 to 10 years, but if the Put options mean vodafone are now not getting the cash back on that investment, therefor a hidden cost of disposal, further reducing the actual overall consideration. They would be looking to work all this out, and see if it was actually worth it.
I agree, it wasn’t a great offer.
Besides Vodafone could receive other offers for Italy.
LONDON, Jan 31 (Reuters) - Vodafone (VOD.L) said it was pursuing other deals in Italy after it rejected a merger proposal from rival Iliad.
"We said in December that we are exploring options with several parties in Italy. We are no longer in talks with Iliad, but our discussions with others continue," a Vodafone spokesperson said on Wednesday.
" So why did it take so long to decline the offer? "
just to be clear..it wasn't an "offer" ...it was a proposal ..the definitions with these things are quite different
Iliad has never made any offers to Vodafone
I'm just stating facts. The overall enterprise value attached to Italy was lower than their previous offer. The time over which we would receive the full value in cash in bank was a longer timeframe (I stand to be corrected here, as I know the previous offer was a purchase not a merger leading to the purchase, but I don't know how much was debt vs cash)
As to why VOD didn't dismiss it out of hand, I cant answer that, obviously the market see's any exit of Italy to be accretive to the SP, but for any business the cost of customer acquisition is high, so to turn off Xm subscribers in 1 country won't be easily recovered by the rest of the group. So VOD would have weighed it all up and determined in their view that the benefits didn't outweigh the Cons?
Vodafone obviously had a good reason for turning down the offer ! NOT ENOUGH?
Beo1
So why did it take so long to decline the offer?
Clearly it should have been dismissed out of hand within days if it was that poor.
One day people will realise that Jax etc are actually right !
It's their schadenfreude that should hack people off, not what they've actually predicted.
Https://www.vodafone.com/news/public-policy/why-telecoms-matters
Illiad Press Statement with detail about Iliad company
https://www.globenewswire.com/news-release/2024/01/31/2820736/0/en/iliad-press-release-Vodafone-fails-to-accept-revised-iliad-Group-s-proposal-to-merge-Italian-businesses.html
Painful again
50s here we come
Vod bod thinks assets are worth more than everyone else they are wrong
To be fair it wasn't a great offer. Lower than last time when it was a full buy out. This time the overall consideration was lower (I get the multiple was higher) and essentially 50% of the value was trapped in put options, thus making it a payment plan, which with time value of money meant the overall consideration was materially lower than last time. I actually respect VOD more not just selling the family silver for any price. Yes, there was benefits to be had to just exit Italy but Illiad were trying to get this on the cheap IMO
I did consider that fleccy, but I'm still wondering whether we'll see a downside move on payment. It's a sensible point. The immediate reaction is, as you say on ex-divi date. I'm waiting to find out.
"We've had a drop from 70 to 67 and the divi payment date is the 2nd. If this holds low and the price comes off after divi payment"
Stupmy are you confusing Payment date with Ex dividend date? Ex Dividend date is where the dividend adjustment occurs, stocks tend to rise slightly on payment dates due to reinvestment.
Shame the article doesn't explain why, or whether an improved offer is expected
The main reason it rose from 65p to 70p was due to italy offer.. Now thats not on table.. its going to go back to 65p again... but this time most likely going to hit new lows... To me BT looks lot cheaper than vodafone now... atleast for BT we can expect bottom.. but never for vodafone...LOL!
Well my post below is becoming interesting now. We've had a drop from 70 to 67 and the divi payment date is the 2nd. If this holds low and the price comes off after divi payment then I could get a entry that is less 'hollow' than I suggested in my previous post. Starting to look as though foresight and patience might yet pay off.
30th Jan at a price of 70.2: Robleo, the divi might be what gets me my entry around 65 or lower. That might be 'hollow' win if the SP doesn't fall further thant he 4.5p.
Oh dear... looks like Vodafone may regret this decision and mainly shareholders especially at depressing share price.
Perhaps they may have different offer but I doubt it.. Looks like market will punish them more ...
Sorry I mean Vodafone says no:
https://www.reuters.com/markets/deals/iliad-says-vodafone-rejects-proposal-merge-italian-units-2024-01-31/
Rob. So why do you waste your time responding to the idiots gutter & jax? Ignore them. As for what I really think about this share, I really think it is underpriced. But who knows? Come on rob, get a grip mate, don't let these idiots drag you down.
Nice movement today