EIR & VODA =>Eircell sale announcement due Thursday - 500 Beiträge pro Seite

[Ines40]

Eircell sale announcement due Thursday

[Ines40]

At today`s VOD close price of 2.54 a 2 for 1 gives 2.08 euros per share. If Denis O Brien can be talked up to 1.15 euros for the fixed line business shareholders will realise 3.23 euros. The internet and directory businesses remain and if these are worth say 40 euro cents the total value will be 3.63 euros, significantly higher than today`s close of 2.85 euros.

From what I can see VOD shares are probably worth holding. Some UK brokers are setting price targets of over £4!which may be a bit on the optimistic side. They do however show resistance at the £2.20 level and are currently being held back because of concerns over debt being incured by telcos to pay for 3G licences. Even the Bank of England has warned lenders about this. However I read somewhere in recent months that VOD is not significantly exposed in this area.

And unlike Telia VOD managed to get hold of a 3G licence in Sweeden as their consortium was successful.

[Ines40]

Eircom mobile sale to Vodafone close
(Adds background, share prices)
DUBLIN, Dec 21 (Reuters) - Irish telecoms group eircom Plc is expected to announce later on Thursday that it has sold its Eircell mobile unit to Britain`s Vodafone Group Plc (LSE: VOD.L - news) for close to 4.5 billion euros, industry sources said.

The sources told Reuters talks between the former Irish state company and the British giant had continued through the night and they were now close to a deal at around 4.5 billion euros ($4.1 billion) -- below the expected 4.6 billion euro to 5.1 billion range.

Both eircom and Vodafone refused to comment.

The deal would wrap up a Christmas shopping spree for Vodafone, which bought a 15 percent stake in Japan Telecom on Wednesday. The Eircell buy would give it control of the largest player in Ireland`s fast-growing mobile market and fit neatly with the group`s UK operations in Northern Ireland.

Eircom (LSE: EIR.L - news) shares, which have fallen steadily since its flotation last year at 3.90 euros a share, were up 3.5 percent in Dublin at 2.95 euros by 1035 GMT.

Vodafone shares, also weak in recent weeks, were off the day lows in London at 244-1/2 pence sterling, down 0.3 percent.

Under the expected deal, eircom shareholders will receive one Vodafone share for every two eircom shares they own.

Eircell, with more than one million customers, is considered the jewel in eircom`s crown and the expected sale will mark the beginning of the break-up of the company.

A consortium led by Irish telecoms entrepreneur Denis O`Brien has already put up a 2.25 billion euro bid for eircom`s fixed-line arm. The break-up would leave a rump multi-media business.

Some 500,000 Irish private investors bought into eircom at its flotation and subsequently saw their investment dwindle as market sentiment suffered and uncertainty surrounded the fate of an outstanding 35 percent stake.