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given interest rates and dividend rates are near equivalent in the current market, 3 cant charge a market interest rate for its investment as earnings wouldnt cover it. that makes me think the CMA will approve the merger in some final form which might even be an IPO
Dan, 'what is the meaning of life'?
According to Vroomfondel and Majikthise, they maintain the search for ultimate truth is 'the inalienable prerogative of your working thinkers'. They demand rigidly defined areas of doubt and uncertainty and consequently insist that Deep Thought be shut down. Vroomfondel (in an agitated state) even demands that his name may, or may not be Vroomfondel, and has to be corrected that he doesn't need to demand "an absence of solid facts" for everything. However, Deep Thought persuades the philosophers that they can 'keep themselves on the gravy train for life' by arguing in public about what answer the computer will eventually give.
Not dissimilar to the competition market authority, consultants and QCs?
if no CMA approval, 3 are unlikely to get a return on their investment at c£200m pa for 30 years or more after shifting their debt to share premium for distribution of earnings. I suppose Hutch could get remedy through new investments in ports etc and the supply chain opening up and that might even be their end game. I cant see them investing more in mobile at that rate of return. Not getting approval cant be in the mobile consumers interest or investment in business growth?
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
'After Friday's soiree at least two prominent hedge fund bosses told City associates that Mr Kwarteng was “a useful idiot”.'
https://www.express.co.uk/news/politics/1677059/chancellor-Kwasi-Kwarteng-mini-budget-Andrew-Law-Howard-Shore-Sir-Henry-Angest-ont
Bonds looking cheap with similar income if it goes much below £1
So vod can increase the interim div or sell 30% vantage and retain control. If vod does nothing I think this goes alot lower on the prospect of giving smartphone access free to the rest of the world. 98.3 my guess
Not expert but think odey could have bought the actual stock and lent some to citadel to short. Dont normally get voting rights with cfds. I suppose we might see citadel short drop of the tracker next week...I hope so
Tough week plus a dose of covid. Would prefer shooting grouse on a friday imho
I am happy for the tax cut and so are millions of others. Citadel and Odey go away.
CPI propping up its own pension liabilities with cash to spare from 360. Exemplary when looking at trimming down/tupe the civil service.
Still showing on VOD IR
https://investors.vodafone.com/sites/vodafone-ir/files/vodafone/debt-investors/bond-outstanding/pdf/92857WAZ3-2022.pdf
Cevian probably got them busy simplifying the five point action plan taskforces for smartphone adoption across the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States
Dan/ Fleccy, I imagine Cevian want a simpler operating model with VOD [Brand] concentrating on their competency selling devices and services online/ in the high street. With more votes, Niel would like to see the network separation but also consolidation in 'markets'. If nothing else, all these sum of the part sales opportunities point to the SP being mispriced if PE/ Iliad etc are lining up to buy now.
As you have pointed out before, the MCB programme and volumes may well have depressed the price on bond conversion eg where the fund mandate doesnt allow holding equities. When the mcb have washed through, surely the SP will reflect the underlying values evidenced in auctions/ offers, otherwise I think VOD should sell the assets and concentrate on the Brand and the Services as the market isnt pricing them in.
Thanks. I didn't know selling half their stake could add 13.2p to the share price and.... 'there is no timetable, but a deal could take place before the end of the year. Potential buyers include US buyout barons KKR, Global Infrastructure Partners and Swedish investment firm EQT'