LONDON/VIENNA |
LONDON/VIENNA (Reuters) - Telekom Austria AG (TELA.VI) shareholder Ronny Pecik is in advanced talks to sell his 21 percent stake to Mexican tycoon Carlos Slim, who is seeking to expand his telecom empire into Europe, according to people familiar with the matter.
If the talks are fruitful, it would be a big step in Slim's effort to expand the footprint of his company America Movil (AMXL.MX) in Europe. Slim already owns 4.1 percent of Telekom Austria.
The Mexican telecom operator, which is now present in a roughly a dozen Latin American countries, has also mounted a raid on Dutch telecoms operator KPN (KPN.AS) via a tender offer for 28 percent of its shares.
Pecik declined to comment on Thursday.
A spokesman for America Movil declined to comment.
Telekom Austria said in January that Pecik, via an investment fund called RPR, had built a stake above 20 percent in the group. Pecik's partner in the investment is Egyptian entrepreneur Naguib Sawiris, who built his fortune in the telecom business and is now a liberal politician.
At a shareholder meeting of Telekom Austria on May 23, Pecik was elected to a board seat and said he was a long-term shareholder, seeking to dismiss concerns that he and his partners would aim for a quick profit by flipping the stake.
Pecik rose to prominence by building stakes with partners in companies such as Oerlikon, Sulzer, Saurer, Ascom and VA Tech before selling on at a profit.
Telekom Austria operates in Austria, Belarus, Bulgaria, Croatia, Liechtenstein, Macedonia, Serbia, and Slovenia. Tough conditions in Europe and fierce competition pushed its core earnings down nearly 9 percent in the first quarter but the company stuck to its 2012 outlook.
Its shares are down 13.5 percent this year, underperforming an 8.2 percent decline in the European telecom index .SXKP. Telekom Austria has a market capitalization of 3.5 billion euros.
The Austrian state remains the largest shareholder with a 28.4 percent stake held via holding company OeIAG.
Pecik had earlier described Telekom Austria as an undervalued pearl of industry despite a wave of corruption scandals - which erupted after he started building his stake - that has cost the group millions and tarnished its image. As an ex-state owned monopoly the group is also seen as overstaffed and having potential for cost cuts.
Sawiris, however, said in an interview with Bloomberg TV on May 24 that he and Pecik were having difficulty convincing the company and its state shareholder that their strategy to cut costs to boost profits was the right one.
"If the government is not going to allow us to manage the company the way we want then it becomes unattractive for us," Sawiris said at the time. "I am an industrialist. I didn't do this deal to go in and buy and sell shares."
(Reporting by Michael Shields and Cyntia Barrera; Writing by Leila Abboud; Editing by David Holmes and Jon Loades-Carter)
Minor Nokia Social update, bug fix - All About Symbian
Nokia's $3.7 Billion In Savings Won't Be Enough To Help The Company - Seekingalpha.com
Nokia (NOK) announced that it will be laying off 10,000 workers and will be shutting down several plants by the end of 2013. The plan is to cut costs by $3.7 billion (3 billion euros).
While the costs cutting may initially help the company maintain a slight profit, the company's net income will still remain in a downward trend. The company expects operating margins to be around -3%, which means that the high fixed costs are making it difficult for Nokia to make a profit.
Management believes the cost cutting will help the company survive, but I don't believe that will cure the problems over the long-term. This is has been a long road for the trouble smartphone maker as competition from companies such as Apple (AAPL) has put pressure on sales.
Nokia used to be the largest cellphone maker in the world until user adoption of the iPhone caused Nokia's sales to tank. Last quarter, the company posted more than a 1 billion euro loss. If Nokia's sales continue to tank, then the losses will be so high, that not even the proposed cost cutting strategy will be enough to put the company in the black.
Nokia is trying to engineer a turnaround through cost cutting. Last year, it laid off 7,000 employees to try and save a billion euros. It seems those savings have not been enough to outweigh the loss in sales. Nokia is in a tough position, but the fact that management believes the savings will help is wrong. If Nokia plans to compete with Apple in the smartphone market, then they need a great product.
The company has negative margins as fixed costs are simply too high. Competition from companies such as Apple are causing Nokia's sales to tank. The company is in between a rock and a hard place and at this point, its unclear if the company even has a long-term strategy. Its best that investors stay away from the company at this point.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Nokia sell Vertu to EQT VI - All About Symbian
Nokia believes that this is the best option for the next step in Vertu's journey of delivering excellence, enabling the brand to focus on increased opportunities for growth in the luxury category.
"With its strong brand, undisputed category leadership and attractive growth outlook, Vertu fits well with EQT VI's investment strategy. EQT VI is excited about the opportunity to develop Vertu as a standalone company and plans to drive the development of the luxury mobile phone category through significant investments in retail expansion, marketing and product development," said Jan Ståhlberg, Partner at EQT Partners, Investment Advisor to EQT VI.
Having delivered double digit sales growth over the past few years, Vertu continues to lead its class with a portfolio of high end mobile phones, increasingly led by its smartphones and tailored services, offering unique access, experiences and opportunities to a discerning and growing customer base.
"This is a logical next step in the evolution of Vertu as the world leader in luxury mobile products," said Perry Oosting, President of Vertu. "Since Vertu began in 1998, our business has grown every year, due to the efforts of our talented workforce and the unique products and services we offer to our customers. We believe that EQT VI will position Vertu to continue to grow and lead in our marketplace."
Striking the perfect balance between an unparalleled art of craftsmanship and modern technology, Vertu offers an unrivalled range of category leading mobile phones as functional as they are aesthetically desirable.
Vertu prides itself on being a pioneer in delivering relevant, tailored luxury information and services direct to mobile handsets through Vertu Concierge, and continues to expand this proposition to deliver unparalleled customer service.
Vertu is headquartered in Church Crookham, UK and employs approximately 1,000 people worldwide.
The transaction, the terms of which are confidential, is expected to close during the second half of 2012, subject to customary regulatory approvals and closing conditions. Nokia will retain a 10% minority shareholding in Vertu.
10 interesting facts about India’s telecom sector - NDTV
In a wide-ranging report covering the growth of the telecom sector in the country, the Telecom Regulatory Authority of India has credited the ultra-low cost of handsets and low tariffs for the boom in the telecom sector.
According to the report, titled ‘Telecom Sector in India: A Decadal Profile’, the subscriber base in India, which stood at 943.49 million in February 2012 as against 28.53 million in April 2000, is skewed in the favour of urban India. It said urban teledensity in the country was 4.4 times that of rural density.
Here are 10 interesting findings of the report:
1. Available international comparisons show that India has the second largest number of telephone subscribers in the world (among 222 countries), accounting for 12 per cent of the world’s total telephone subscribers. It is also one of the fastest growing in terms of telecom subscribers.
2. Mobile tariffs in India are the second lowest in the world after Bangladesh. Countries with the highest mobile tariffs include Austria, Venezuela, Greece, Portugal, Australia, Japan, Spain, Switzerland, France, and Brazil.
3. Mobile phones accounts for nearly 96.6 per cent of the total telecom subscriptions, and more than 95 per cent of wireless connections are prepaid.
4. Around 431 million wireless subscribers in India subscribe to data services. This implies that 48.26 per cent of total wireless subscribers are capable of accessing data services/Internet on their mobile phones.
5. Wireless phones dominate the market in India and the wire-line phone segment constitutes merely 3.4 per cent of the total subscriber base.
6. The telecom sector has received on average 8.2 per cent of total inward FDI between 2000–01 and 2010–11. Most of the FDI has gone to the cellular mobile segment.
7. The share of telecom services (excluding postal and miscellaneous services), as a percentage of the total GDP of the country, has increased from 0.96 in 2000–01 to 3.78 in 2009–10.
8. From 2001 to 2011, the total number of telephone subscribers has grown at a compound annual growth rate (CAGR) of 35 per cent. The comparable rates in the 1980s and 1990s were 9 per cent and 22 per cent, respectively.
9. GSM continues to be the dominant technology for wireless phones with an 87.9 per cent share. Bharti is the dominant player in GSM segment accounting for 22.35 per cent of the market in terms of market subscriptions followed by Vodafone (18.80 per cent), Idea (13.53 per cent) and Reliance (12.05 per cent). There are as many as 14 operators using GSM technology compared to just six using CDMA. Reliance is the leading player in the CDMA market with 51.32 per cent share.
10. Urban teledensity is approximately 4.4 times higher than rural, showing the digital divide that exists in India. There are wide variations in penetration of telecom services across states. States such as Delhi, Tamil Nadu, Kerala, Himachal Pradesh and Punjab have relatively high teledensity. However, states such as Assam, Bihar, Madhya Pradesh, UP, Jammu and Kashmir and the North-Eastern states have relatively low teledensity. The numbers show that teledensity in Delhi is 5.1 times higher than that of Assam.
National Youth Agency and O2 Think Big to Create NCS Legacy with Social Action Funding - YAHOO!
Young people graduating from National Citizen Service (NCS) will have the chance to continue their community projects in four regions of England thanks to a Social Action Fund grant awarded to the National Youth Agency (NYA) supported by O2 Think Big.
London, UK (PRWEB UK) 14 June 2012
Young people graduating from National Citizen Service (NCS) will have the chance to continue their community projects in four regions of England thanks to a Social Action Fund grant awarded to the National Youth Agency supported by O2 Think Big.The Social Action Fund programme will provide NCS graduates in the North West, North East, Yorkshire and South East regions with cash awards, training and support from a team of specially employed youth workers.
The eighteen month project will see young people build social action projects to benefit their local communities and create volunteering opportunities for their peers. The aim is to provide young people and all who participate with skills and experience for their future and to leave a lasting legacy of social action and volunteering within communities.
The National Youth Agency has a strong and successful partnership with O2, which has evolved through working together to manage and deliver O2 Think Big. The programme funds and supports young people’s ideas to create or change something in their local community.
This partnership will drive and shape the new Social Action Fund project and O2 have provided an additional £500,000 to match the funded awarded. The young people participating in the Social Action Fund project will be provided with cash to develop their ideas, whilst gaining valuable guidance and advice from the O2 Think Big team and O2 Helpers to make sure their projects come to life.
Minister for Civil Society Nick Hurd said: “We have awarded the National Youth Agency and 02 Think Big over £900,000 which they have match funded with £500,000. This will give this year’s National Citizen Service graduates the chance to continue their social action projects in their local communities.
“This is a great example of government, business and the voluntary sector working together to provide opportunities for young people so that they can improve their skills and take on new challenges.”
On being awarded the funding, National Youth Agency chief executive Fiona Blacke, commented: “Having the opportunity to build progression routes for young people who have been on National Citizens Service and had a taste of social action is great. We, at NYA, as well as our programme partner, O2 Think Big and our local delivery teams, are really excited about this project coming forward.
“We are going to use teams of paid interns and apprentices led by a youth worker to reach out to and engage young people and signpost them to programmes and funders that can support their next steps. Key to this is O2 Think Big which is providing funding and support for over 850 young people's projects which will drive the creation of volunteering opportunities for many young people.”
Ronan Dunne, CEO Telefónica UK said “We welcome this initiative to further strengthen the support given to young people. The investment announced today, in Britain’s biggest asset, its young people, is imperative. Working with the National Youth Agency and Social Action Fund will allow us to extend the Think Big programme and work with more young people across the UK.”
To deliver the Social Action Fund project, the National Youth Agency and O2 Think Big will be working with local delivery partners – Envision, Youth Action and Keyfund - in each of the regions and partnering with Durham University to evaluate the impact of this programme on young people, communities and O2 Helpers.
The Social Action Fund is managed by The Social Investment Business on behalf of the Cabinet Office, and will fund social action projects in England, from civil society organisations, public sector bodies and businesses with a track record of delivering social action programmes.
The Social Investment Business’ chief executive, Jonathan Jenkins, said: “The energy and vision of applicants has been impressive and we are pleased to manage a Fund that finances ambitious, life-changing social action projects which will really make a difference and bring people together to improve the quality of life in their communities.”
ENDS
For further media information CONTACT
Holly-Marie Draper
Tel: 07921 687 847
Email: hollyd(at)nya(dot)org(dot)uk
Editors Notes
1. The NYA works in partnership with a range of private, public and voluntary sector organisations to support and improve services for young people. Our particular focus is n youth work and we believe that by investing in young people's personal and social development, young people are better equipped to live more active and fulfilling lives.
2.Think Big is an innovative multi-million pound youth programme. It is designed to back young people across the UK and help them harness their ideas, energy and passion to run projects and campaigns in their local community. The initiative works by putting cash directly into the hands of the young people and supporting them to develop skills and to positively impact their community. In addition to the financial support, young people receive training and mentoring to help them tackle the issues that matter to them and affect them most.
3. The NCS Graduate programme’s aim is to create generations of socially active and responsible young people by maximising the impact of the core NCS programme.
4.There are still some NCS places available this summer. If you are 16 or 17 and want to see if this opportunity is still available where you live, you should go to http://www.direct.gov.uk/ncs or http://www.facebook.com/ncs
Holly-Marie Draper
National Youth Agency
0116 285 3764
Email Information
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