Member Info for Beo1

Yes, if you hold no belief the share price will go up, then to hold them is just sunk cost fallacy and would be better to sell up make your money elsewhere and come back in here when you think it will go up (or don't)

WOW, why it cut off the end

debt at 5% so paying off a different % of debt vs the gearing has the effect of increasing the cost of capital

Also for all of those, expecting or hoping all these sales proceeds pay of the debt, don't count on it. The cost of capital is made up of cost of equity (typically 10+%) and cost of debt (

Bear in mind the drag on today's SP by the broader market, the FTSE is down, on a FTSE good day then the SP would be higher, Plus the US waking up seems to bump the SP in recent days, so its hard to see the true impact on the Market of this news.

Garonne, Italy is about 10% of the company, so to get a compound 3-4% increase in the SP for something that is only 10% of the company to me seems quite impactfull, theoretically if the companies were listed separately then your effectiving getting a 30% increase in the SP

The bit I'm struggling with, is we are getting 8b proceeds but the debt is our issue, whereas Illiad offer was 8.5b combined consideration but we got to keep 50/50. or am I missing something here. Don't understand how this was the better of the 2 offers.

Actually the number you quoted wasn't the liabilities. so its the net asset value + loan debt (added back as it will be in the net asset value) that we would have to write off against the 8b proceeds (but not the non current assets, it would be non current assets + current assets - working capital debt - finance lease debt, eg the net assets + loan debt i mentioned earlier)

But that debt will include working capital debt and Finance Lease debt (which are operational debt and not strictly Debt for the purposes of the acquisiton) EG IN the UK total Current & Non Current debt was £5.9b but the real non operational debt was £2.5b, Italy will be the same. There is zero chance they take on our Lease's from the P&L side and not transfer over the liability.

As they are set up as different entities in different companies, 100% there would be some debt against Italy specifically on the Statutory accounts. EG the Vodafone Limited (Vodafone UK) has £2.5b on inter company loans associated with it. Which I got from companies house, but I dont know if Italy do the same.

On a related note, not all the Liabilities in the gross debt value are Loans, some are the finance lease payable outstanding values, so some of the "debt" we have will transfer over, but any of the Loans wont.

Us? I dont get your point or you misunderstood mine.

we are getting $8b for a company free of debt. Meaning we have to use some of that $8b to pay down the Italy proportion of that debt. Whereas some others were suggesting we were getting $8b and the debt in Italy would move across. So all Im trying to point out is that the headline $8b isnt the accretive cash position to vodafone in this instance based on the RNS

Its all relative though isn't it. Vodafone will still have a presence in multiple markets. if this was $60b of debt just for the UK it would be horrific but it isn't

And from a financial perspective, Italy and Spain doesn't meet its cost of debt, so if we remove those 2 (and its associated debt) then the gearing improves and our ability to makes returns over the cost of capital improves and therefor the debt becomes alot more manageable from FCF

No it wont, read the RNS. The offer is 8b for a debt free Vodafone Italy. Not that they will pay 8b and take on the debt. I've been involved in a couple of acquisitions with my old company and we bought a company for £150m free of debt and cash. the company had a loan in place for £150m so essentially we bought the equity for £1. as they received £150m but then had to pay off there loan as the purchase agreement was based on it being debt free.

Its a debt and cash free purchase vs the MCAP which includes debt, so not a like for like comparison. Anyone know how much debt Vodafone Italy has on its books? As we will sill "own" that debt, the net position 8b less any italy debt is what should be compared to the MCAP

Im fairly confident the SP will move north post results, the problem is from what baseline, and would the north movement only get me to my buy-in. Literally every day the last week we have started ok, then spent all day dropping, then got a last minute reprieve to save the day (although doesn't look like we get that today).

Its his "thing", weird but he deliberately misspells words. He never used too, but after he said he was leaving he came back with this version of himself.

64.7 for me please, looks like these rumours will run aground so a retreat beyond the SP threatened on Friday

Last 15 mins price has shot up

I think you missed my point

Germany is a market not a customer, I get the captive nature of the banded products meant groups of customers were won on lost, but what I mean is. in terms of the actions at a CEO's mercy. she can't just and marginal price to a big new customer and win that business to set the groups return's on the right path. Is it her fault, Germany is faltering? is it her fault Germany banned banded products in the way they did? Is it even her fault that over reliance on the groups profits were in 1 market (No, as thats on her predecessor), but she is trying to correct that, Growth in emerging markets, exit markets that were previously hidden by germany's over performance. Reduce costs to compensate for falling margins in previously good markets. Are all the actions we know are ongoing accretive to FCF? Id say Yes, can she do them quicker but not at the expense of practically auctioning them off and losing a bunch of value? Again Id say no? Hell look at the political pressure on the UK. MP's calling for it to be shutdown, Unions' getting involved ETC.

Im really surprised by how many ex CEO's we have on this board. VOD is a massive conglomerate, its not like 1 big customer would move the needle on the returns, so big strategic Investments/Divestments are whats needed here, and the CEO is trying to get a number of these done, but this stuff doesn't happen overnight. If this was a small tin pot business then yes the CEO could go out a schmooze a big customer, bump up the revenue and earnings and look like a hero but that isn't the case here.

Its his thing, he used to type legibly, but at some point he created this weird persona. Along with the race ist tripe he occasionally comes out with