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o2 bought for £18 billion by Telefonica |
batesie
Joined: Feb 13, 2004
Posts: > 500
From: London, UK
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News that spanish operator Telefonica has made an offer to buy o2. More to follow. . .
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[ This Message was edited by: batesie on 2005-10-31 09:05 ]
[ This Message was edited by: batesie on 2005-10-31 09:07 ] |
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batesie
Joined: Feb 13, 2004
Posts: > 500
From: London, UK
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Telefonica buys UK's O2 for £18bn
http://news.bbc.co.uk/1/hi/business/4391754.stm
Mobile phone group O2 has agreed a takeover offer from Spanish telecom company Telefonica.
Telefonica is to pay £17.7bn ($31.6bn) for the firm in order to get a foothold in two of Europe's largest mobile phone markets - the UK and Germany.
Under the cash deal, Telefonica will pay 200 pence per share, a 22% premium on Friday's closing price of 164.25p.
O2 has been subject of bid interest recently, with Dutch firm KPN and Deutsche Telecom making approaches.
Telefonica, which has agreed a deal with the board of the UK company, said O2 would retain its existing brand and continue to be based in the UK.
Complementary business
"The combination with O2 is a logical step for Telefonica in pursuing its strategic goal of providing its shareholders with both growth and cash returns," Telefonica said in a statement.
[The deal] is very good for shareholder value
Peter Erskine, O2
Check O2's share price
O2 chief executive Peter Erskine added: "This transaction brings together two companies which are growing strongly with highly complementary geographical activities."
The two firm's said O2's business in the UK, Germany and Ireland would go well with Telefonica's businesses in Latin America and Spain.
Telefonica has a customer base of around 145 million and around 173,000 staff.
The group added that the deal would produce "economies of scale" - resulting in cost savings of an estimated 293m euros (£198.8m) a year by 2008.
'Good value'
Mr Erskine told BBC Radio 4's Today programme that he believed shareholders would accept the deal - which is likely to be completed early next year.
O2 shareholders, including many small investors who picked up stock at the time of the demerger from BT in 2001, will receive 200p a share if the deal goes through.
"It is very good for shareholder value. It's an all-cash offer. It's £2 a share, which is somewhere in the range of a 25% premium over the last three months," Mr Erskine said.
"It's also good for customers. They have no overlapping territory, so they will be able to offer our customers better roaming and better services around the world.
"Finally, it's very good for our people. Because there's no overlapping territories, we can really build on what we've got, as opposed to having to integrate and rationalise jobs."
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luigithfc
Joined: Sep 17, 2005
Posts: > 500
From: North London
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i heard about it on gmtv and they say nothing will change
Feedback +34
T.H.F.C. |
david1975
Joined: Apr 05, 2004
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well i hope they can improve the customer sevice and maybe get peoples bills right
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brix25
Joined: Aug 20, 2003
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From: Cape Town, South Africa
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Thought they'd change the name to Movistar or something Spanish 
Liar liar pants on fire/ You burning up like David Koresh- Ghostface Killah |
Rocky B.
Joined: Jan 15, 2005
Posts: 357
From: Leicester, England
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Nah, they're keeping the O2 name. Suprised they haven't tried to sure Oxygen yet 
I don't expect to see anything changing really.
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Russcos
Joined: Sep 10, 2005
Posts: 19
From: Scotland
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As long as the bills stay low and the free minutes keep rolling in i'm happy to stay with 02.
Russ. |
SCORPIONKING1982
Joined: Mar 11, 2003
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From: Leeswood
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I hope they send us over to spain to work  |
thami
Joined: Feb 08, 2005
Posts: 169
From: UK
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Quote:
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On 2005-10-31 23:28:33, SCORPIONKING1982 wrote:
I hope they send us over to spain to work
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lol dream on |
batesie
Joined: Feb 13, 2004
Posts: > 500
From: London, UK
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UK mobile phone operator O2 has agreed to a £17.7bn ($31.6bn) takeover by Spanish telecoms firm Telefonica.
BBC News looks at what the deal means for the future of O2, its customers and its shareholders.
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Is Telefonica's takeover good for 02 customers?
O2 chief executive Peter Erskine, who is backing the Spanish takeover approach, seems to think so.
He says the combined company will be able to offer users improved roaming services around the world.
O2's operations in the UK, Germany and Ireland fit neatly with Telefonica's in Spain and much of Latin America.
But on a day-to-day level, O2 customers shouldn't notice too much difference. Telefonica has pledged to keep O2's brand name and management in the UK.
Was the takeover expected?
02 has been at the centre of takeover rumours for some time.
Do I think someone else will come to the table? Absolutely
Gareth Jenkins, Deutsche Bank analyst
Check O2's shares
As one of Europe's few independent mobile phone operators, the company is regarded as something of a prize by telecom rivals.
Dutch firm KPN and Deutsche Telekom recently revealed they were in talks to buy O2, although no deal emerged.
Hong Kong-based Hutchison Whampoa, the owner of Britain's third-generation 3 network, has also been linked to a possible takeover.
But Telefonica's announcement still came as something of a surprise for investors, many of whom are still tipping a bid from Deutsche.
Is O2 in good shape?
Europe's sixth-largest mobile phone group has been in bullish mood recently.
Last month the company said it expected revenue growth in the UK to increase by up to 9% and also pointed to strong growth in Germany.
O2 was spun off from Britain's dominant fixed-line operator BT Group in 2001, and reported pretax profits of £309m last year.
Its takeover leaves a UK mobile phone market dominated by foreign operators, with Orange owned by France Telecom and T-Mobile owned by Deutsche Telekom.
Only mobile giant Vodafone remains British-owned.
What does the takeover bring to Telefonica?
A slice of two of Europe's most important telecoms markets - Britain and Germany.
O2's brand will remain the same under the Spanish deal
As one of the world's biggest phone companies, Telefonica has been busily expanding its operations in Latin America, but has been looking to build its presence in Europe.
The company says its planned acquisition of O2 will improve the profile and balance of its operations worldwide.
"O2 is an excellent company that, driven by a top-class management team, has been able to become one of the highest growth mobile operators in Europe," says chairman Cesar Alierta.
Telefonica, which has about 145 million customers across the world, estimates its takeover of O2 will generate savings in the region of £200m by 2008.
Is a counter-bid for O2 likely?
Analysts appear to think so.
"Do I think someone else will come to the table? Absolutely," says Deutsche Bank analyst Gareth Jenkins.
Telefonica's 200 pence per share cash offer for 02 represents a 22% premium on the UK company's Friday closing price of 164.25 pence.
The Spanish firm has the backing of 02's board.
But Mr Jenkins believes Deutsche Telekom could mount a rival offer of more than 200 pence per share with a cash-and-shares bid.
All this is good news for O2's shareholders, who stand to do well out of any battle for ownership of the British firm.
The story of O2's takeover may not be over yet.
http://news.bbc.co.uk/1/hi/business/4392036.stm
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batesie
Joined: Feb 13, 2004
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From: London, UK
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good news for people with o2 shares!
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batesie
Joined: Feb 13, 2004
Posts: > 500
From: London, UK
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this has gone real quiet? AxxxR have you heard any news about this takeover
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axxxr
Joined: Mar 21, 2003
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From: Londinium
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no nothing at all....will do some digging around see what i can find.
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vanquish
Joined: Mar 20, 2003
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From: Wor Newcastle Phone: V600i
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by that ax means looking through news.bbc.co.uk hehe 
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axxxr
Joined: Mar 21, 2003
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From: Londinium
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not necessarily....
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Posted: 2005-10-31 09:10
