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TLS, TELSTRA CORPORATION LIMITED |
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![]() Posts: 950 Thanks: 3 ![]() |
this is from the telecomasia.net site today
Telstra may take up stake in Malaysia's Maxis March 18, 2004 Reuters Telstra may fund a $1.2 billion bid by Malaysia's Maxis for smaller rival DiGi.Com, giving the Australian telco a foothold in Malaysia, a research report has suggested. But its investment could come amid slowing growth in the Malaysian mobile market while bitter past experiences of foreign firms in the country may curb any excitement over such a deal, analysts and fund managers said. None of the companies involved would confirm the report. "We had one too many [bitter experiences]," said Nik Azhar Nik Abdullah of Commerce Asset Fund Managers. Deutsche Telekom is still entangled in a $175 million arbitration claim against Celcom, a unit of Telekom Malaysia, almost a year after it sold out of the cellular phone firm. In 2002, former Prime Minister Mahathir Mohamad blocked a 2.2 billion-ringgit offer by SingTel for a stake in Time dotCom. A CIMB Securities report said Telstra would take a 20% stake in Maxis, Malaysia's top cellular phone firm by subscriber numbers. Quoting unnamed industry sources, it said Maxis may pay between 5 and 6 ringgit a share for 61% of DiGi, currently held by Norwegian firm Telenor. Based on Wednesday's close, that would represent a premium of between 12% and 34% on DiGi's price, valuing it at as much as 4.5 billion ringgit ($1.2 billion). Maxis would issue new shares for the Telenor stake and for the rest of DiGi's stock and sell them to Telstra. "We are as surprised as everyone else to hear this rumor circulating in the market," said a Maxis spokesperson. "Hypothetically speaking, we will consider and evaluate potential investments that could bring and add value to our shareholders," the spokesperson added. Telstra declined comment on the report and Telenor representatives were not available for comment. Slowing Growth, Maturing Market Malaysia's mobile phone subscriber base grew by about 20% to 11 million users last year, a penetration rate of 44% for a population of 25 million people, the third-highest ratio in Southeast Asia after Singapore and Brunei. But growth is unlikely to match high double-digit figures achieved in the past as the market, worth some 10 billion ringgit in annual sales, nears saturation point at about 50%. In contrast, Indonesia, which has a much bigger population, has a penetration rate of less than 10%, analysts say, making it a better bet for the Australian company. Telstra, which is seeking to expand its overseas business amid a maturing local market, is one of the rumored bidders for Excelcomindo Pratama. Still, the purchase of a 5% stake in Telekom Malaysia by Singapore's investment arm Temasek Holdings earlier this month, could be a catalyst for a Telstra-Maxis tie-up, Commerce's Nik said. "The administration in Malaysia is more open toward foreign investment now," said Kenneth Tang, investment manager with Credit Agricole Asset Management. Temasek's purchase has raised speculation that its unit SingTel may be allowed to buy a stake in a Malaysian phone company, probably Telekom's mobile arm Celcom. COPYRIGHT: © Reuters 2004 |
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![]() Posts: 1,772 Thanks: 7 ![]() |
And sell the strength ![]() Thats me out again at $4.80. Tex. -------------------- The above comments are just my opinions, do your own research before deciding to buy or sell.
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![]() Posts: 1,772 Thanks: 7 ![]() |
Buy the weakness ![]() -------------------- The above comments are just my opinions, do your own research before deciding to buy or sell.
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![]() Posts: 34 ![]() |
sell TLS
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![]() Posts: 1,772 Thanks: 7 ![]() |
Back in at $4.76.........some big boys selling it down ![]() Hoping for one more run before X-div. Tex. -------------------- The above comments are just my opinions, do your own research before deciding to buy or sell.
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![]() Posts: 404 Thanks: 17 ![]() |
I agree Kathy. I also saw that Terry McCrann was pushing that Sensis and other parts of Telstra would be outstanding separate floats. I think that it is unlikely that the senate will allow a float of the whole of Telstra and public opinion is against it. However, the Senate may have no objection to floating off non-core parts of Telstra and leave the majority public owned part of Telstra as a straight telphone company. The top management probably wouldn't like it since they would be in charge of a smaller entity but I see it making great sense in terms of shareholder wealth and the government would get considerable funds without much (if any) voter backlash. -------------------- Cheers,
Smartman |
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![]() Posts: 1,772 Thanks: 7 ![]() |
No real opinion from me Kathy, I leave that to Ziggy and his boys ![]() I'm out today at $4.80. Tex. -------------------- The above comments are just my opinions, do your own research before deciding to buy or sell.
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![]() Posts: 950 Thanks: 3 ![]() |
Yes, they feel that this aquisition will effect a share buyback, but I personally like the idea of dividing them and floating sensis, whats your opinion? Have a good night Kathy |
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![]() Posts: 1,772 Thanks: 7 ![]() |
TLS got bashed in the papers for this aquisition, but the market seems to like it ![]() The opinion seems mixed. some brokers say hold, UBS says buy.....target price $5.50. I think we'll see a run into X-Div followed by a sell off. I see TLS as an outstanding long term buy, and will let a small parcel ride for the next year or two. Tex. -------------------- The above comments are just my opinions, do your own research before deciding to buy or sell.
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![]() Posts: 950 Thanks: 3 ![]() |
Telstra snaps up Trading Post for $636 million
Im sure im missing something, but, Why? Any opinions on this??? |
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