SI
SI
discoversearch

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.
Strategies & Market Trends : Bosco & Crossy's stock picks,talk area
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: KyrosL who wrote (37091)4/6/2012 5:35:39 PM
From: Crossy  Read Replies (2) of 37387
 
re: City Telecom Halted (1137.HK, NASDAQ: CTEL [ADR])

well,
my guess from a strategy perspective and given how the ADRs reacted on the last days they were trading,
a takeover or merger might be in the cards. On possible suitors or targets:

A) TO or combination with mobile network
en.wikipedia.org
note that the wireless players in HK appear to be much larger than CTEL,
yet they need to invest into FTTT infrastructure, hence the appeal of CTEL as
a "missing link". Acquisition by Telstra or New World Development (both own CSL), or Smartone Vodafone (0315.HK) which in turn is owned by Sun Hung Kai Properties might make sense. These players
are also lacking meaningful fiber infrastructure

B) combination with the incumbent cable operator i-cable, majority owned by Canary Wharf
en.wikipedia.org
makes even more sense. Wharf might finally throw in the towel and either acquire CTEL or merge
their i-Cable stake (an ailing company no longer growing revenues) into a CTEL interest. This makes
most sense as CTEL is developing its own proprietary TV and movie content. i-cable could terminate
their own inferior coax last mile and move over to CTEL's FTTH/FTTP network model. The combined
company would be a great contender in the fixed line space. alternatively, CTEL might be willing to
acquire i-Cable outright but I fear the price might be too high. Better use its equity for something else.

just my 2 cents of course
CROSSY
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News