[Everything Goes]

Deutsche Telekom & Orange puts EE float on hold till they get more 4G subscribers.

It is believed Orange and Deutsche Telekom are holding out for EE to sign up more 4G subscribers, thus increasing value, although Financial Times' sources suggest that some investors remain to be convinced that EE will hold onto its LTE market lead.


http://www.mobiletoday.co.uk/News/27....M6IPJwwT.dpuf

[enapace]

Aha thanks for that hadn't heard they had delayed it.

Not sure if anyone is interested but Manx Telecom the biggest network on the Isle of Man is going to be put up for flotation this week or next week.

HgCapital who brought it back in 2010 from Telefonica is looking for an out will be interesting to see who buys this as they have a brilliant 3G network for the island and about to launch 4G. Would be nice if one of the UK networks brought this.

[japaul]

Quote:

Originally Posted by Everything Goes

Deutsche Telekom & Orange puts EE float on hold till they get more 4G subscribers.

It is believed Orange and Deutsche Telekom are holding out for EE to sign up more 4G subscribers, thus increasing value, although Financial Times' sources suggest that some investors remain to be convinced that EE will hold onto its LTE market lead.


http://www.mobiletoday.co.uk/News/27....M6IPJwwT.dpuf

Or perhaps they now prefer an outright sale. I note this time unlike before they haven't put a date on when they would revisit the idea of a float. Plenty of private equity interest and Orange's credit rating was downgraded this week because of its situation in France...

[enapace]

Quote:

Originally Posted by japaul

Or perhaps they now prefer an outright sale. I note this time unlike before they haven't put a date on when they would revisit the idea of a float. Plenty of private equity interest and Orange's credit rating was downgraded this week because of its situation in France...

You referring to the 4G licence issues ? Maybe AT&T have offers them something.

[japaul]

I was thinking of the competition and price war now facing Orange and the existing players in France which was the main reason for the downgrade. They've been trying to slash costs and sell off non strategic assets but revenues and debt cover ratios have been suffering and things only look like getting worse.

Having said that sometimes these sort of things can have the opposite effect i.e. if you are suffering in your home market then having a good mix of international assets mitigates things to some extent.

[enapace]

Quote:

Originally Posted by japaul

I was thinking of the competition and price war now facing Orange and the existing players in France which was the main reason for the downgrade. They've been trying to slash costs and sell off non strategic assets but revenues and debt cover ratios have been suffering and things only look like getting worse.

Having said that sometimes these sort of things can have the opposite effect i.e. if you are suffering in your home market then having a good mix of international assets mitigates things to some extent.

Very good point Free Mobile has really shook things up in France kind of like T-Mobile is doing in the US. You do have a good point the UK probably is one of there best countries at the moment. Suppose best thing for them to do would be to try and sell minor places like Belgium or ones where they are making little profits like Poland and maybe even Spain.