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Posts with tag merger

T-Mobile UK apparently being pressured to merge or bust

There's not exactly a ton of details on this one, but it looks like Deutsche Telekom CFO Timotheus Hoettges caused a bit of a stir at the company's recently shareholder meeting, where he reportedly suggested that T-Mobile UK would likely have to merge with another carrier or face the possibility of going bust. Specifically, Hoettges said that "in our view consolidation is a means to take excess capabilities out of the market," adding somewhat ominously that "nothing is unthinkable on our side." Of course, that immediately brings up the question of which carrier T-Mobile might merge with, and MarketingWeek suggests that one of the most likely suitors would be 3, which it currently ranked fifth in the UK market right behind T-Mobile, although O2, Orange, and Vodafone would no doubt also be in the running.

[Via Electronista]

Verizon asks for more time to spin off divested chunks of Alltel


In order to get the FCC to agree to Verizon's massive acquisition of Alltel -- the US' 5th-largest carrier -- it had to agree to some pretty serious concessions, including divestitures in a whole slew of markets to ensure that the competitive spirit remained intact. The "transaction" (as Verizon calls it) closed on January 9, and the resulting mega-carrier was given until May 9 -- a week from Saturday -- to finish spinning off the required markets. Well, as we all know, companies this large aren't known for their agility, and sure enough, Verizon is asking for just a little more time to dot its i's and cross its t's. A "Request for Extension of Management Period" has been filed with the FCC on behalf of the companies asking for another 60 days, which means the divested markets would be up and running outside of Verizon's control by July 8 of this year. Verizon blames "the sheer size and complexity of the divestitures coupled with the current economic conditions" for the request, but seriously, can't they just throw this all up on eBay for, say, a 5- or 7-day auction and be done with it? No? [Warning: PDF link]

Hutchison and Vodafone to merge in Australia, become VHA


So, how does one successfully snatch away market share from Telstra and Optus? If you're Hutchison or Vodafone, you merge! Announced today, two of Australia's smaller operators have decided that an equal joint venture would be the best approach to moving on up, and while they aren't suggesting that the current economic conditions influenced the decision, many analysts are suggesting that the tie-up could help the newly formed VHA fend off adverse effects from slowed spending on mobile communications. Once together, the combined group will have a local market share of around 26 percent, and Hutchison Australia's current chief executive, Nigel Dews, has been chosen to lead the new venture. Under the agreement, VHA will market its products and services under the Vodafone brand, though it will retain exclusive rights to Hutchison's "3" brand in The Land Down Under.

[Via MobileBurn]

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Nokia jumps out of thin air, acquires bit-side


Can't say we saw this one coming. Out of seemingly nowhere, Nokia has up and acquired a privately held Berlin-based professional services and software company with 39 employees. As part of the agreement, Nokia will take on "substantially all assets of bit-side GmbH," and for some unexplained reason, that move will enable Nokia to "strengthen and accelerate its mobile development for Nokia Maps." According to Michael Halbherr, vice president and head of social location at Nokia: "Acquiring bit-side enables Nokia to offer consumers the world-leading mobile location applications, such as Maps, along with routing and navigation at an accelerated speed." It's stated that bit-side will be wrapped into Nokia's Services unit, but honestly, we're still left mostly in the dark as to what this all means. Dark and inscrutable, just how we like it.

[Via MobilityUpdate]

Court blocks Sprint from offering service in iPCS areas


It didn't manage to block the Sprint / Clearwire merger, but iPCS is still scoring little victories for itself in its continued fight with Sprint over alleged violations of the exclusivity agreement it's had in place with the (much, much larger) carrier for nearly a decade. An Illinois court has now ruled that Sprint can't offer service in areas where iPCS has a presence, while Sprint's partners have their fate decided in the hallowed halls of justice starting March 30. iPCS covers seven states, so it's actually a pretty big blow to Sprint to have the footprint ganked from their icy clutches; guess they'll just have to make it up with Android-powered sub wins.

[Via Phone Scoop]

Verizon and Alltel to join in holy matrimony January 9th


Following a good half year of courtship while the regulatory miscellany ran its course, Verizon's finally ready to take the plunge and call this $5.9 billion deal done. The combined juggernaut will amass a staggering 78 million subscribers, putting it roughly 3 million ahead of its closest rival, AT&T, though it'll do so at the cost of assuming some $22.9 billion in Alltel debt. Ultimately, the merger means some positions at Alltel headquarters in Little Rock, Arkansas will get axed -- but hey, AT&T Mobility HQ's just a stone's throw away in Atlanta, so Verizon's headcount loss could ultimately be AT&T's gain.

[Via Phone Scoop]

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$52 billion BCE takeover deemed dead, funeral planned for next week

Man, this one has been a bumpy ride, and oddly enough, it's not even over. Well, it's over, but not over. The back-and-forth over whether or not BCE would be bought out has come to an abrupt halt, as auditor KPMG "determined that the company-to-be wouldn't pass a solvency test required as a condition of closing the deal." On the table was a $42.75-a-share cash offering by a group led by the Ontario Teachers' Pension Plan, but all that's lost now. According to BCE Acquisition Group: "Because KPMG has concluded that a required test for the solvency opinion was not met, this mutual condition to completion of the acquisition could not be, and was not, satisfied." Here's where things get wonky; BCE is now vigorously attempting to procure a $1.2 billion "breakup fee" that the Teachers group doesn't agree with. We're still waiting to see if BCE will initiate litigation, but you can bet said Teachers organization ain't scared.

[Via mobilesyrup]

FTC clears Verizon acquisition of Alltel, last hurdle crossed


It's already made it past the Department of Justice and the FCC after making a few concessions, and Verizon has now cleared the last major hurdle blocking its acquisition of Alltel, with the Federal Trade Commission today giving the deal its all-important stamp of approval. Unlike the other regulatory agencies, the FTC apparently didn't require that Verizon make any further concessions, and instead simply approved an early termination of their antitrust review and indicated that they had "no objections." For those keeping track, the deal easily pushes Verizon past AT&T to become the largest wireless carrier in the United States and, as we have heard, it'll also likely have the side effect of some job cuts from the Alltel benches.

[Via RCR Wireless]

Nokia seals acquisition of Symbian Limited


Yep, it's a done deal. On the same day Nokia chose to unveil its new flagship N97, the outfit also announced that it had "completed its offer to acquire software company Symbian Limited." As of now, "all conditions to Nokia's offer to acquire Symbian Limited have been satisfied and it has received valid acceptance of greater than 99.9% of the total Symbian shares that Nokia did not already own." Nokia's not saying much else about the changeover just yet, but we are told that every last Symbian employee is expected to wear a Nokia badge come February 1, 2009.

Clearwire and Sprint close deal to combine WiMAX businesses


This one's been a long time in the making, but the deal is finally done. Clearwire and Sprint Nextel have gleefully announced that the transaction to combine their next-generation wireless internet businesses is complete, and beers are on the two of 'em this evening. On the real, the agreement dictates that Sprint hand over all of its 2.5GHz spectrum and WiMAX-related assets (including XOHM) to Clearwire; additionally, Clearwire has received a $3.2 billion cash infusion from Comcast, Intel, Time Warner Cable, Google and Bright House Networks. Details beyond that are scant, though we are told that the terms "originally announced on May 7, 2008" are the ones being abided by, and the new company will retain the Clearwire name and its Kirkland, Washington headquarters.

Vodafone voices intentions to keep stake in Verizon Wireless

Earlier in the summer, some words from Verizon chief Ivan Seidenberg led us all to believe that he wanted his firm to take full control of Verizon Wireless. Now, Vodafone CEO Vittorio Colao has made clear that his outfit had precisely zero plans to sell its 45% stake in VZW, though he did mention having an "open mind" about the future of said stake. Just in case that wasn't definitive enough for ya, he stressed that staying put was "the best thing" for Vodafone right now, and given just how many Storms are flying off of US shelves, we can't stand to disagree.

[Via mocoNews]

SK Telecom no longer casting glances in Sprint's direction


We've been hearing about a possible SK Telecom-Sprint tie-up since July of 2007, but if either firm ever hoped to actually tie the proverbial knot -- well, let's just say that ship has sailed. Given the weakening economy and the general tendency to resist taking risks right about now, the Korean giant has dropped its plans to partner with Sprint in any form or fashion. In related news, Sprint is looking to hop on the quickly expanding layoff bandwagon, but given its humongous Q3 loss, we suppose that's not totally illogical. We're told that the carrier is offering "voluntary buyout packages" to an unspecified number of employees, which is far more awesome than the "thanks, now get the hell out of here" line that's being handed down by so many other firms. Crazy times, we tell you.

[Via Boy Genius Report]

Sprint, Clearwire to finally get hitched thanks to FCC approval


We're relieved, here's why: we don't have to report on this on-again / off-again relationship like we're a celebrity tabloid rag anymore. Around the same time it gave the thumbs up to Verizon and Alltel, the FCC also decided that tumultuous lovebirds Sprint and Clearwire can finally get hitched. Their eventual offspring will be the WiMAX network they've been promising with a bunch of other partners -- the plan is to offer wireless broadband to 140 million people within 30 months' time, so today's a big day for WiMAX and corporate romantics everywhere.

Deutsche Telekom found to own too much of T-Mobile USA, paperwork likely in order

Tsk, tsk, Deutsche Telekom -- there you go making trouble again. After the FCC took a good, hard look at the prospective Verizon-Alltel merger, it also took a peek at foreign-controlled assets in other wireless phone companies. What it found was that Deutsche Telekom AG actually owns 10% more than the US legal limit of T-Mobile USA; as it stands, DT has a "30%, non-controlling interest in a common carrier license," while the limit here for such a scenario is 20%. The company has 30 days to respond with how it plans to come into compliance, but reports are suggesting that simple reshuffling / paperwork could probably clear things up. If only life were so easy for the rest of us, huh?

[Via phonescoop]

Department of Justice approves Verizon's Alltel acquisition, requires more concessions


The suits at the Department of Justice just green-lighted Verizon's planned acquisition of regional rival Alltel, moving the two CDMA giants closer to a marriage that would easily eclipse AT&T to become the largest wireless carrier in North America. There's a catch, though, and a rather hefty one at that -- Verizon has to agree to divest itself of some 100 local markets in 22 states to keep the competitive landscape in action; given that they've already indicated a willingness to shed some markets to seal the deal, it probably won't be an issue. The next hurdle for Vertel (or Allzon, depending on how you roll) will come on November 4, when the FCC votes on whether it'll bless the deal. As for the rumors that Verizon is now eligible to get Alltel at a 50 percent discount with a $1 billion mail-in rebate if it agrees to a two-year contract, we're not hearing any comment from either side.




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