|
 |  Wall Street Journal -
Nov-05-2009Telef??nica to Buy Hansenet in $1.34 Billion Deal(topic overview)
CONTENTS:
SOURCES
FIND OUT MORE ON THIS SUBJECT
CEO Franco Bernabe, who has put in place a gradual cost cut and debt-cutting plan to turn around the company, said the HanseNet sale allowed the group to accelerate debt reduction. Telecom Italia confirmed its profitability targets for 2009 and said adjusted net debt should fall to around 34 billion euros by end-2009, not taking into account the HanseNet sale expected in the first quarter of 2010. Its nine-month net profit fell 33 percent to 1.165 billion euros as revenues fell 6.2 percent to 20.188 billion euros. Earlier on Thursday, Deutsche Telekom ( DTEGn.DE ) shied away from forecasts for 2010, citing economic uncertainty on both sides of the Atlantic, but costs controls helped it beat forecasts for quarterly core profit. [1] MILAN, Nov 5 (Reuters) - Italy's No. 1 telecoms operator, Telecom Italia ( TLIT.MI ), stuck to its 2009 targets as it posted lower profits on Thursday, and said it had agreed to sell a unit even though the price is questioned by minority shareholders and analysts. The debt-laden company said it had agreed to sell its German broadband unit HanseNet to Spain's Telefonica ( TEF.MC ), an investor in the operator, for 900 million euros. "It's not the best valuation (for Telecom Italia) but the impact on debt is positive," a Milan-based analyst said, adding that results were above expectations.[1] ROME (Dow Jones)--Telecom Italia SpA (TI) Thursday clinched a deal to sell its German broadband unit Hansenet to Telefonica SA (TEF) for EUR900 million, as part of its efforts to focus on core assets and reduce its heavy debt burden. Italy's largest telecommunication operator said the Hansenet sale will accelerate the reduction of its closely watched net debt, which stood at EUR35.5 billion at end-September.[2]
MADRID, Nov 5 (Reuters) - Spain's Telefonica ( TEF.MC ) will buy broadband operator HanseNet from Telecom Italia ( TLIT.MI ) for 900 million euros ($1.34 billion), Telefonica said on Thursday, strengthening its competitive position in Germany. Analysts and media reports had indicated that the unit could fetch 900 million to 1 billion euros after Telefonica said in October it was negotiating a price with its Italian ally.[3] Shareholder Marco Fossati had asked that HanseNet not be sold for less than 1.5 billion euros ($2.23 billion). His family holding company Findim has 5 percent in Telecom Italia.[1]
By 1447 GMT, Telefonica shares were up 1.5 percent at a session high of 19.16 euros. The company said combined sales for its Telefonica O2 brand in Germany would reach 5 billion euros after the Hansenet buy.[3] Telefonica, Europe's largest telecoms company, has a fixed line network in Germany but not very many customers, while HanseNet has a market share of about 10 percent, making it the fourth largest DSL service provider.[3]
Telefónica O2 Germany is to buy Telecom Italia's German subsidiary Hansenet for €900 million (£807m).[4] Telefónica O2 Germany is fourth in the Germany mobile market with 15 million mobile customers, behind Deutsche Telekom, Vodafone and E-Plus. It will have a total of 2.4 million DSL customers following the Hansenet purchase.[4] Telefónica O2 Germany will add Hansenet's 2.2 million DSL customers. It will be able to offer an expansive bundle of mobile and fixed line products.[4]
The acquisition will make Telefónica O2 Germany the number three player in the German market in terms of revenue, with a combined annual revenue of almost €5 billion.[4]
The buy should therefore transform Telefonica's local unit O2 Germany into a relevant player.[3]
MADRID--Telefnica SA said Thursday it agreed to buy Telecom Italia SpA's German broadband unit Hansenet in a move to improve its foothold in the competitive German telecommunications market. [5] In a filing to the Spanish market regulator, Telefnica said the deal values Hansenet at 900 million ($1.34 billion) and that it would be done in cash.[5]
SOURCES
1. UPDATE 1-T.Italia sticks to 2009 targets, sells unit | Reuters
2. UPDATE:T.Italia Sells Hansenet For EUR900M, Sticks To Targets - WSJ.com
3. UPDATE 1-Telefonica buys HanseNet for 900 mln euros | Reuters
4. O2 Germany in '''900m Hansenet deal - Mobile News
5. Telefnica to Buy Hansenet in $1.34 Billion Deal - WSJ.com
GENERATE A MULTI-SOURCE SUMMARY ON ANY SUBJECT
Enter your search query below. WAIT 10-20 sec for the new window to open.
Get more info on Telef??nica to Buy Hansenet in $1.34 Billion Deal by using the iResearch Reporter tool from Power Text Solutions.
 |
|  |
|
