Vodafone-Airtouch (NYSE: VOD) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Vodafone-Airtouch (NYSE: VOD)

VOD 14.17

+1.6%

Jan 23 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: MrGreenJeans who wrote (2854)	6/6/2000 8:23:00 AM
From: Jules Shear	Read Replies (2) of 3175

The Infostrada/Arcor news is surprising to me.... This represents an interesting sign about VOD's attitude about the wireline/Fixed wireless space. Don't know if this is pandering to angry Mannesmann shareholders by not "selling" some of their core assets or a change in strategy. I don't take the "flush with cash" argument at face value. VOD has always claimed that they are a mobile operator and had clashed with Mannesmann about whether the future was a hybrid of wireline/fixed wireless/mobile (Mannesmann) or entirely wireless (VOD). The fact that VOD is temporarily flush with cash to fund 3G after Orange sale should not be a reason by itself to not do an IPO. There is significant opportunity cost of using proceeds from non-strategic asset sales/IPO's to go after strategic wireless assets (as they've mentioned for example in Latin America/Asia/etc.)- so holding onto these properties either is a)political move to Mannesmann shareholders, b) a subtle, but significant shift in strategy, or c) they have a buyer(s) in the wings for the entire ball of wax of Arcor/Infostrada (France Telecom?, Baby Bell?, Worldcom?, BT?). If VOD is "flush with cash", why the push for IPO's in Australia and US (which could be largest IPO ever and thus generate huge amounts of cash)?? and what could they possibly do with all the cash from these IPO's which will be significantly more than from Arcor and/or Infostrada? Verizon is already free cash flow positive and literally generating "billions" of dollars of free cash. Does'nt make strategic sense on why you would want to dilute your Verizon position in the public market but keep Arcor/Infostrada (unless VOD wants out of Verizon?). Bottom line-- is that it does'nt make any sense why VOD would float/dilute its strategic assets for cash this year (Vod Pacific, Verizon) and decide not to float its non-strategic ones (Infostrada/Arcor). VOD is really shrewd about this kind of stuff and I would'nt judge the book by its cover on this announcement. Much more to come on this story. Hmmm.....

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next