Garbage, IMO, and possibly a tactical play thrown back at T. Colao playing hard ball? Knuckle ball kind of trash low and to the outside isn't going to get Colao to chase. Going to take a solid pitch over the plate to entice the swing.
Wonder whatever happened to the news piece of China Mobil considering taking a minor stake in VOD. That was a quick hit rumor but maybe part of the possibility VOD rump is partitioned.
Just someone playing their book. How many different telecoms in EU have been mentioned as possible targets for VOD in the past six months? Countless. Somebody needed a boost in the drooping Italian bosom. A couple analysts, including our beloved Bienenstock, have already written that set of knockers off as a target for VOD Italy move.
Funny, bosom CEO supposedly meeting with what could become their fierce competitor IF Randy gets randy and goes for the rump.
Telecom Italia(TI) acts like Randy is getting randy.
Don't forget the Barron's/WSJ pieces over the weekend. The nipple article was complete waste of paper.
“Should Vodafone Group plc Be Worried About BT Group plc’s Mobile Ambitions?”
The above is the latest article from Motley Fool's Rupert Hargreaves, he is consistent with his VOD bashing.
Sentiment: Strong Buy
But nothing can stop the object of small's affection from opening higher this morning and causing daily MACD buy signal.
Granny popping the hood in Italy is a scary thought. What's the difference between 25 year old [Telecom Italia symbol]s and 65 year old [Telecom Italia symbol]s? A belly button in between them.
I don't believe for one second they would settle for the old breasted bag of wrinkles with large legacy debt and heavy competition in that market when they could have the finest piece of rump in the EU, India, Southern Africa.... Old, stinky red herring just thrown in the car. Somebody has to be laughing at the foul smell.
Problem with VOD was complete lack of fiber leading to constipation. Something might be in the Wind but might just be a false rumor on the Fastweb.
The poor fellow with Telecom Italia visiting with U.S. big wigs including T is an exercise in futility when your balance sheet is mired in debt. That deal is near hopeless.
rite, I saw that too but everywhere I look, its been corrected to 20%. I believe the 25% might have been an online printing error. If I get a chance today, I will see what Barron's actually printed in its article. I agree, you could have written it since your price value on VOD is almost identical as indicated in the article.
Yep, VOD has been like a bucking bronco throwing a lot of riders lately. Hopefully, she will calm down and let others get back on or new ones try her out!
Appears my post was eaten....Thx for posting PD.
This was also in Barron's. Nice headline that I could have written. Did notice both the Barron's and WSJ links when opened have a bar readout of "Vodafone Has Upside of 25% or more" vs. the piece reading 20% or more.
VOD with a long wicked inverted hammer yesterday which is a bullish reversal candle in a downtrend. Surprised by the pullback the last two days but broad markets have been goofy.
Sentiment: Strong Buy
Vodafone holders have since gotten a package worth about $37 per ADR—30% above the ADR price since our story a year ago. Vodafone distributed most of the proceeds of the Verizon Wireless sale to its holders, who got about a 0.26 share of Verizon Communications and about $4.93 in cash for each Vodafone share. Vodafone then did a reverse 6-for-11 split.
Vodafone CEO Colao served shareholders well in crafting the deal for Verizon Wireless.
What Vodafone investors got per share
Verizon (0.26 share) $12.35
Vodafone (6-for-11 split) 19.90
Total Value $37.18
AT&T has tried to cool talk that it might bid for Vodafone, and some U.S hedge funds are rumored to have sold their stakes. AT&T, which has expressed European ambitions, still may seek to buy Vodafone, which has a $100 billion market value. That means AT&T is probably the only potential buyer. Vodafone recently bought cable companies in Germany and Spain, which could make it less appealing for a buyer seeking a wireless play.
Vodafone is a bet on an upturn in Europe, improving conditions in the European wireless market, and the rollout of next-generation 4G data services, which are more prevalent here. U.S. investors may be more comfortable owning Verizon or AT&T, which has also been favorably featured in Barron's. But for those seeking European telecom exposure, Vodafone is a good play.
Vodafone Has Upside of 20% or More
Vodafone Group VOD -0.85% has delivered in a big way for its shareholders in the past year by selling its 45% stake in Verizon Wireless to Verizon Communications VZ -0.17% for $130 billion in a deal that closed in February. Now, U.S. investors who bought the stock as a cheap way to own Verizon Wireless are wrestling with what to do with their shares.
Europe's largest wireless operator, Vodafone owns cable-TV properties and has wireless operations in emerging markets.
Vodafone's U.S.-listed American depositary receipts (ticker: VOD) look appealing at about $36, down from a recent high of $42, amid cooling speculation that AT&T T -0.22% (T) will buy the company. "Vodafone offers good value," says Citi analyst Simon Weeden. "The business is turning around in Europe, and we could see AT&T re-emerge" as a potential buyer. He carries a Buy rating and a price target of about $48.
As Morgan Stanley analyst Luis Prota wrote recently, "Vodafone is an attractive stand-alone asset…with a sound balance sheet and a safe and growing dividend yield." He rates the stock Overweight with a price target of about $43. Vodafone yields 5%, in line with Verizon and AT&T.
CEO Vittorio Colao deserves kudos for negotiating a well-timed, tax-efficient deal for Verizon Wireless at a high price. A year ago, Barron's wrote favorably on Vodafone ("Deal of the Century," April 8) when speculation was heating up about a transaction. At the time, Vodafone traded at about $28. By contrast, Verizon shares (VZ) are down slightly since then, as investors worry that it overpaid for its wireless business at a time of growing U.S. competition.
The last earnings conference call estimated pro forma debt at £14.5 billion or $24 billion after the partial retention of VZW sale proceeds and expenditure for Kabel D. That did not include Ono, which obviously had not taken place.
I believe Randy wanted to pay $120 billion plus debt assumption after Kabel D and before Ono. Colao said no. Then Randy whispered through the press because he could not negotiate directly. VOD was for sale, but they were way far apart on price. So now, I think Colao builds up the company and sells off pieces--India, Africa, Europe, etc. However, if the stock falls far enough, maybe Colao will consider the $120 billion or $45/share, which would put the deliverable at about $42. With huge outlays needed for future capital expenditures and acquisitions, I think Bienenstock's original calculation was fair(September 5, 2013--between $120 billion and $124 billion). And yes, that did include the retained proceeds after the return of value. I think the break up value is higher, but it will take time.
I guess that may be appropriate given the drop as of late in market cap. BUT net debt figure might be debated given the new assets with the new debt (just less reduction in debt/trade off). Back it up 10B if you want to go back to pre Ono and post VZW sale. 150B net debt wouldn't be all bad. So I'm 8B higher than postulated. Who knows with the growth markets VOD has if 30% of fair value. Given current market cap we are looking at a Mannesmann kind of takeover premium. Story has a lot of similarities...T stock rising strongly creating buying power...Stephens out building support for a move...
Rub, Be honest here. Do you think this is the for sale sign being planted in the front yard with a price sticker on it? I see little other reason here for this news bit. All the big hurdles have fallen with the Kroes agenda voted in this week, VZ antitrust gone and now VOD B&Os have their shares all in a row. T was supposedly beginning to explore financing options end of January....share buyback increased which should push treasury share buying power of +60B before it is done - keeping in mind T could purchase additional shares after a deal announcement is reached until near closing of a deal. Lots of neon signs pointing at a deal here.
Weird spike this morning because that supposed news driver is nothing that hasn't been thrown across print already. Wouldn't it be something for Son to pull off? Bought a piece meal of VOD (Japan) and now they are throwing the idea around he could take the mother ship. SFTBY is a red herring here I believe. T is swimming with a fin sticking out of the water.
Sentiment: Strong Buy