Member Info for Beo1

So 51% of £700m plus £275m cost savings (assuming £25k per head), thats £632m of additional FCF per annum, discounted at 10% (I dont know the actual WACC as i dont know the expected return on equity). Thats £3.7b on incremental value on the DCF models, so on £20b market cap that's 18% increase in SP. The argument would be how much is already price in but I'd argue none as its PE Ratio is already below the TELCO average.

Its potentially 18 months away and needs to go through regulatory hurdles. So no surprise the initial spike is "low". But as appetite to buy in on the journey grows I think we'll start to see a steady recovery to 80+

End of 2024 though is some wait, then a wait for the synergies to be realised. At least it will change the SP momentum. Perhaps spur E& to increase there shareholding

News out? Big jump in SP

You know you can' take the PE ratio righ now? It's a PE ratio heavily effected by a one-off transaction. The forward PE ratio is more like 9 which whilst low, it doesn't really scream massively undervalued. Unfortunately, we have a Low return on capital employed, so whilst the Market value vs Book value looks really low, if we aren't then sweating those assets well enough (eg a good ROCE) then the earning will be low hence the "OK" looking forward P/E.

Didn't budge the US market it seems.

Why will they need a capital raise? VOD have over €11b in cash don't they, since the disposal. Plus over 1.5b free cash flow this year with lower spectrum due they year, so more of the operation free cash flow will drop down.

She's managing multiple stakeholders of which shareholders is one. She's hardly going to step down if she's confident on her turnaround plan just because of current pressure on SP. She'll be around for a period yet.

No chance she doesn't care. Her predecessor lost his job over the SP performance.

Going for 78.5 for this week.

As the saying goes a broken clock is right twice a day. I'd rather have been wrong and the 3 merger news drop officially, but I guess we can wait a week. Higher estimate next week me thinks.

Has there been any disclosures on the level of equity / debt swap on the deal, I haven't seen any bar conjecture. If not how do you jump to the conclusion it's based on current SP?

Skier

that's not how it works, the new JV will have the same debt as the 2 entities combined but vodafone will have 51% of the combined debt vs 100% of 51% of the debt. Again this is very simplistic as I understand some value will be attached to the merger, but it definitely wont add $6b of net debt to Vodafone PLC's balance sheet

Not just here, see UK FTSE updates in online press about it being down, with vodafone a drag due to bad reception of the merger leak yesterday, at least 3 articles and not one mention it went ex-div today

How does the market not? The share has gone ex-div at a div rate of approx 5% and we are down roughly that level, thats all this drop is. Not some wider view of the potential merger news

Totally illegible diatribe, but expect nothing less from GS

We'll have some green days, some red, but the drag of ex div will mean 75.25

Perhaps that's why SP slowly creeping up as they realise Amazon dont own any spectrum in EU and would need to partner with someone

That was there fairly early this morning and we were green after that for a few hours, Graphs show 3m volume on the spike down

How was this bad news to drive the SP down so far. Forgive me for my ignorance, but the US economy adds 339k jobs why is this bad news? and why does it even effect Vodafone?