Vimpelcom near Orascom, Wind takeover – report

Vimpelcom near Orascom, Wind takeover – report
(Telecompaper) Russian mobile operator Vimpelcom is close to finalising a USD 7 billion deal to merge with most of the telecommunications assets of Naguib Sawiris, the Egyptian telecoms entrepreneur, the Financial Times reports. Under the deal, which could be announced as soon as 4 October, Vimpelcom would secure most of Sawiris’ telecommunications assets in emerging markets, plus Wind, Italy’s third largest mobile operator. The enlarged Vimpelcom group would be the fifth largest mobile operator in the world by number of customers, with a market capitalisation of USD 24 billion. Vimpelcom’s current market value is USD 19 billion. Weather Investments, Sawiris’ private investment vehicle that controls Wind and Egypt-based Orascom Telecom, could receive about USD 2 billion in cash under the deal, plus a 20 percent stake in Vimpelcom, worth USD 4.8 billion. Vimpelcom’s board was due to meet on 3 October evening to approve the deal with Weather, and people familiar with the situation said the transaction could yet founder because of its complexity. According to the FT’s sources, Vimpelcom could assume at least USD 12 billion of debt held by Weather. The Vimpelcom transaction is due to include Djezzy, Orascom’s biggest profit generator, and Dmitry Medvedev, Russia’s president, is expected to visit Algeria this week, a move that may help seal the deal. One asset that Sawiris would exclude from the Vimpelcom transaction is its 29 percent stake in a holding company that controls ECMS and Egypt’s leading mobile operator Mobinil. Another asset outside the transaction would be Sawiris’ mobile business in North Korea.[Lees verder]

EarthLink to acquire ITC Deltacom for USD 516 mln
(Telecompaper) US ISP EarthLink has agreed to acquire ITC DeltaCom for USD 3 per share in cash , or a total USD 516 million including USD 325 million in debt. The purchase price represents 4.7 times the operator’s adjusted EBITDA for the twelve months ended 30 June, including expected cost synergies and excluding one-time transaction costs. The acquisition will enable EarthLink to create an IP infrastructure and services company by combining its existing ISP businesses, including New Edge Networks and its nationwide MPLS network, with Deltacom’s integrated communications business. Deltacom’s 16,400 mile fibre-optic infrastructure in the Southeast, over 75 percent of which is owned or controlled under indefeasible right of use agreements, includes a fourteen-state synchronous optical network backbone with 35 metro fibre rings, 294 collocations and twenty voice and data switches. Deltacom currently serves over 32,000 SMBs, multi-location enterprises, government agencies and wholesale customers in the southeast with services including MPLS and IP-based products. With the acquisition, EarthLink’s employee ranks will grow from 575 people to just under 2,000. On a pro forma basis, for the twelve months ended 30 June, the combined companies would have generated approximately USD 1.1 billion in revenue, USD 588 million of which from business services segments. EarthLink expects to achieve annual cost synergies of approximately USD 20 million, to be fully realised by the end of the second year after closing. The company will continue to be headquartered in Atlanta, Georgia, and led by chairman and CEO Rolla P Huff, president and COO Joseph M Wetzel, and CFO Bradley A Ferguson. Holders of 62 percent of Deltacom’s shares have already approved deal, which is expected to close in the fourth quarter 2010 or the first quarter of 2011. EarthLink also updated its financial guidance for the full year and now expects adjusted EBITDA of USD 207-211 million and free cash flow of USD 193-201 million, combined with USD 10-14 million in estimated capital expenditures and net income of USD 94-97 million.[Lees verder]

Microsoft files patent infringement claim against Motorola
(Telecompaper) Microsoft has filed a patent infringement lawsuit against Motorola with the International Trade Commission and the US District Court for the Western District of Washington. Microsoft claims that Motorola’s Android smartphones infringe nine Microsoft patents. In a statement, Microsoft said that the patents at issue relate to a range of functionality embodied in Motorola’s Android smartphone devices that are essential to the smartphone user experience, including synchronising e-mail, calendars and contacts, scheduling meetings, and notifying applications of changes in signal strength and battery power. Horacio Gutierrez, corporate vice president and deputy general counsel of Intellectual Property and Licensing for Microsoft, said that it had ‘a responsibility to its customers, partners, and shareholders to safeguard the billions of dollars it invests each year in bringing innovative software products and services to market’.[Lees verder]

Vimpelcom near Orascom, Wind takeover – report
(Telecompaper) Russian mobile operator Vimpelcom is close to finalising a USD 7 billion deal to merge with most of the telecommunications assets of Naguib Sawiris, the Egyptian telecoms entrepreneur, the Financial Times reports. Under the deal, which could be announced as soon as 4 October, Vimpelcom would secure most of Sawiris’ telecommunications assets in emerging markets, plus Wind, Italy’s third largest mobile operator. The enlarged Vimpelcom group would be the fifth largest mobile operator in the world by number of customers, with a market capitalisation of USD 24 billion. Vimpelcom’s current market value is USD 19 billion. Weather Investments, Sawiris’ private investment vehicle that controls Wind and Egypt-based Orascom Telecom, could receive about USD 2 billion in cash under the deal, plus a 20 percent stake in Vimpelcom, worth USD 4.8 billion. Vimpelcom’s board was due to meet on 3 October evening to approve the deal with Weather, and people familiar with the situation said the transaction could yet founder because of its complexity. According to the FT’s sources, Vimpelcom could assume at least USD 12 billion of debt held by Weather. The Vimpelcom transaction is due to include Djezzy, Orascom’s biggest profit generator, and Dmitry Medvedev, Russia’s president, is expected to visit Algeria this week, a move that may help seal the deal. One asset that Sawiris would exclude from the Vimpelcom transaction is its 29 percent stake in a holding company that controls ECMS and Egypt’s leading mobile operator Mobinil. Another asset outside the transaction would be Sawiris’ mobile business in North Korea.[Lees verder]

EarthLink to acquire ITC Deltacom for USD 516 mln
(Telecompaper) US ISP EarthLink has agreed to acquire ITC DeltaCom for USD 3 per share in cash , or a total USD 516 million including USD 325 million in debt. The purchase price represents 4.7 times the operator’s adjusted EBITDA for the twelve months ended 30 June, including expected cost synergies and excluding one-time transaction costs. The acquisition will enable EarthLink to create an IP infrastructure and services company by combining its existing ISP businesses, including New Edge Networks and its nationwide MPLS network, with Deltacom’s integrated communications business. Deltacom’s 16,400 mile fibre-optic infrastructure in the Southeast, over 75 percent of which is owned or controlled under indefeasible right of use agreements, includes a fourteen-state synchronous optical network backbone with 35 metro fibre rings, 294 collocations and twenty voice and data switches. Deltacom currently serves over 32,000 SMBs, multi-location enterprises, government agencies and wholesale customers in the southeast with services including MPLS and IP-based products. With the acquisition, EarthLink’s employee ranks will grow from 575 people to just under 2,000. On a pro forma basis, for the twelve months ended 30 June, the combined companies would have generated approximately USD 1.1 billion in revenue, USD 588 million of which from business services segments. EarthLink expects to achieve annual cost synergies of approximately USD 20 million, to be fully realised by the end of the second year after closing. The company will continue to be headquartered in Atlanta, Georgia, and led by chairman and CEO Rolla P Huff, president and COO Joseph M Wetzel, and CFO Bradley A Ferguson. Holders of 62 percent of Deltacom’s shares have already approved deal, which is expected to close in the fourth quarter 2010 or the first quarter of 2011. EarthLink also updated its financial guidance for the full year and now expects adjusted EBITDA of USD 207-211 million and free cash flow of USD 193-201 million, combined with USD 10-14 million in estimated capital expenditures and net income of USD 94-97 million.[Lees verder]

Microsoft files patent infringement claim against Motorola
(Telecompaper) Microsoft has filed a patent infringement lawsuit against Motorola with the International Trade Commission and the US District Court for the Western District of Washington. Microsoft claims that Motorola’s Android smartphones infringe nine Microsoft patents. In a statement, Microsoft said that the patents at issue relate to a range of functionality embodied in Motorola’s Android smartphone devices that are essential to the smartphone user experience, including synchronising e-mail, calendars and contacts, scheduling meetings, and notifying applications of changes in signal strength and battery power. Horacio Gutierrez, corporate vice president and deputy general counsel of Intellectual Property and Licensing for Microsoft, said that it had ‘a responsibility to its customers, partners, and shareholders to safeguard the billions of dollars it invests each year in bringing innovative software products and services to market’.[Lees verder]