After the Quam debacle, the Spanish telecommunications giant Telefonica tries to grasp the purchase of o2 again in Germany after the attacked Telekom has returned
After the Telekom does not want to make a high offer for o2, the Spaniards now have a free train. But you could stay the 26 billion euros expensive British fish in the neck. Telefonica tries to invade the British market at the same time and a total reorientation of the business policy. In the case of failure, the consumers will pay back to the marketplace and quasi-monopolist in Spain thanks to state help.
Now the Deutsche Telekom has put an end to the hearing, she could try to offer the offer of telefonica for o2 still. "We will not submit a counter offer for O2," said Financial Officer Karl-Gerhard Eick on Wednesday in Bonn. At the same time the company announced, it will be 32 in the coming three years.Remove 000 digits. An offer is not in the interest of the investors, explained Eick (Telekom boss Ricke enters the cost brake. The Telekom Group had also negotiated with o2 over a possible purchase together with the Dutch KPN. The talks were canceled only in August.
As the analysts explain, the price offered by the Telefonica is too high with 26 billion euros. He is far from what the Telekom could apply. The Telefonica boss Cesar Alierta wants to lie down the 7.5-fold earnings before interest, taxes and depreciation for the British Group. Because this is very expensive, the investors are punishable by the Telefonica share accordingly. After the cancellation to a purchaser battle by Telekom, the share prices of the Telefonica in London fell by 5.6%. Madrid Borse records a price decline of about 4.5%, since the takeover offer was made on Monday.
Telekom can not afford such a supply. The Group’s debt mountain has been printed by austerity programs since 2003 from 64 billion to 44.5 billion euros. In addition, the Telekom had to calculate with clear conditions of the cartel farming. As a marketplace in Germany, she had probably to sell the o2 subsidiary in Germany.
Thus, the Telefonica will now follow its debt mountain on Uber 47 billion euros. Overall, the company wants to take a cross-back loan of 27.2 billion euros to complete the entire process. The three participating banks Citigroup, Goldman Sachs and the Royal Bank of Scotland (RBS) not only finance the deal, but also receive 25 million euros for their advice.
Once the Telefonica had taken a different way to expand its unilateral orientation on the Spanish and Portuguese language space. Quam strolled the product. In addition to Germany, the company also had UMTS licenses in Italy, Austria and Switzerland to play on the coarse European market.
The project failed to fail, the Group had to write down 12 billion euros. Now the ex-state monopolist is trying again and introduces the big deal, which a Spanish company has ever sought. The Telefonica stood with O2 after its boral value for the second degenerate telecommunications company in the world. In Europe he was punctured the Telekom in third place. With mobile communications, the Group’s own data with 116 million customers worldwide the fourth-gray provider behind China Mobile (224 million), Vodafone (165 million) and China Unicom (121 million). The division of Latin America fell through the 25 million O2 customers from 34 to 28% back.
But the question arises as to whether the Telefonica is supposed to take over at the high price. In addition, the interest rates. The EURIBOR, where the cash rates are based, is no longer as high with 2,413 as has been as high as for more than two years. The EURIBOR is the interest rate to demand the European banks from each other when trading deposits with a specified term. The US Federal Reserve has again raised the keyzzin. With four percent he is not as high as for four years.
The monopolist with the soft pillow
Despite everything, the Telefonica has a gentle starting position than Deutsche Telekom. The Spanish Government is still rough influence on the former state monopolists. And which government does not support the aspiration of the largest national company, which also largely controlled private television and radio stations (Spain: Berlusconi’s media power as a model?To)?
The Telefonica had unique conditions to deject the debacle at the expense of consumers. The competition works, at least in the main business in Spain, hardly. So it is only a small part of the truth that the quasi-monopolist with the degradation of 15.000 places have been renovated, as it is manually colored. Because it is omitted that a largely lack of regulation of the market and the state pricing of the Telefonica wet a lot of money and secures the position against competitors.
So the government allowed the telecommunications giant after the quam debacle a coarse sip from the pulle. In 2003, the Group was allowed to raise the foundation for the 12 million fixed network connections equal to 8%. In 2004 and 2005, it was once again granted an increase by 4.35%. Although the average earnings in Spain is well below that in Germany, the foundation is at the same level and significantly higher than in France. She was also increasing via the German basic, if the Telefonica has again fully enforced the framework in 2005 because of the new financial needs.
This is even clearer this shows in the use of the Internet. The prices for a DSL connection are widely located in Germany, France or England and 40% on the EU average. There may not be wondering if Spain continues to lose to ground for internet usage and only on the 17. Rank is in the EU (Spain continues to lose to the extent on Internet use). Even with the mobile phone connections, it is allowed to be tapped strongly, which is particularly pleased with the Markfuhrer Telefonica again. In Spain, 12 cents are calculated for connection establishment and also fully calculated the first minute, no matter how long the connection takes. Nearly 1.4 billion euros have paid the consumers in 2004 for telephone seconds, which they did not have paddy. Since 1999 the good seven billion euros are.
This is unique in Europe, say consumer protection organizations, and complain against these bonds. The places a "abuse" is opposed to consumers and a "hidden bondage". After a scream and a new suit, the Telefonica has just returned the attempt to introduce lucrative rounds from the second minute. Instead of returning seconds, she wanted to import the 30 seconds. The jolt but only applies to contract customers and not for the many pre-paid cards.
The lawsuits were successful against the high prices for calls from the Spanish landline to Spanish phones. The lie absurdly often over the prices for the call of a foreign mobile phone, the consumer protections say. In all cases, the Telefonica could break away rough sources of revenue in a positive judgment.
Interestingly, another development was allowed. Because Spain threatens million sanctions due to their special influence on former state enterprises, because despite conviction by the European Court of Justice (ECJ) the EU directives are not implemented. The Court had assessed that state companies are obstructing the free movement of capital. The EU Commission has ultimately invited Spain in July to finally implement the requirements of the privatization of former government firms. Because the government is still a special influence on Golden shares (Golden Share) in the coarse companies, which goes far beyond the share of normal actions. In addition to the Telefonica, Olmulti Repsol, the Energy Sustainery Endesa and the Groben Bank Argentaria-BBVA, this also concerns the tobacco company Tabacalera, which has now called Alta after fusion with Seita and has privatized the Cesar Alierta.
This influence had explained the (ECJ) in 2003 for "illegal". The Commission had now declared again, the changes by the UltraConservative People’s Party (PP) in December 2003 were not sufficient. Since the effort in Marz 2004, the socialists have led to the problem, although Brussel had already pointed out the problem in April 2004.
Interestingly, the process was also allowed to become the Telefonica boss Cesar Alierta because of insider than the ore conservative was still Tabacalera boss. The investigations were not "two years ago in the Sande", as the Finacial Times Germany claims. The brave investigator Santiago Torres wants to threaten the organic procedure against one of the most powerful manner Spain. There is no contradiction against his decision in September. FUNF million euros had to deposit the Alierta, his wife and his nephew in July, deposit in order to stay in freedom. The evidence against Alierta are so explained that the anti-corruption prosecutor Alejandro Luzon calls for four years and six months in prison for Alierta.
