| To: AmericanVoter who started this subject | 7/13/2000 4:54:33 PM | | From: Joar | | | | << Sonera says all 3G options remain open
By Brett Young, Reuters
13 July 2000
Finnish Sonera said on Wednesday all its partnership options remained open in the wake of the alliance between Dutch KPN , Japanese NTT DoCoMo and Hong Kong's Hutchinson Whampoa .
The three announced a link-up which will span Britain, Germany, France, Belgium and possibly Italy in an attempt to grab a slice of the third-generation mobile license pie.
"When it comes to our earlier announcements that we are looking for partners there is no change," Sonera spokesman Jyrki Karasvirta told Reuters.
"In general I think that whatever alliances are announced... it does not mean that after this any of these groups would be closed," he added, declining to comment on whether Sonera would consider joining a group like that of KPN/DoCoMo/Hutchison.
Analysts said that while there are still a number of big players in Europe with whom Finland's largest telecom operator could work, the news of the three-way grouping heightened the need for Sonera to latch on to a larger ally.
Sonera has said earlier it has been in talks with the world's top 10 mobile telecom service groups about consolidation and could be in serious merger talks by year's end.
"Certainly KPN was one possible partner for Sonera, and you could get the feeling that (Sonera) is standing still," said Jussi Hyoty, analyst at FIM Securities in Helsinki.
"There is some slight pressure here (to form alliances), because size matters and it is far better to have a solid group to participate in," he said.
The partnership was another step in the consolidation of the global telecom market, and aims to help offset high costs of European Universal Mobile Telecommunications System (UMTS) licenses
Sonera currently holds third generation licenses in Finland and in Spain and is part of a group bidding in Germany. It has indicated interest in a Swiss 3G license and pulled out of the British 3G auction due to the soaring bids.
Karasvirta reiterated that Sonera would look into all 3G license opportunities, but declined to comment on whether it had been in talks with partners for two of the larger upcoming auctions in France and Italy.
Third generation mobile phone systems will support higher data transmission rates and allow for Internet, video and other multimedia applications.
Sonera's shares were up 2.4 percent at 51.70 euros at 1352 GMT on a positive Helsinki bourse , with brokers saying the share was being boosted by speculation stemming from the KPN/DoCoMo/Hutchinson alliance. >>
totaltele.com
Joar |
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| To: MrGreenJeans who wrote (75) | 7/23/2000 5:56:18 PM | | From: Joar | | | | Wow! Big news! Wonder what impact such a Vodafone move would have on the SNRA stock price...
Sonera is going to present its first half year results tomorrow 24/7.
<< Half year profit is expected to rise to 236 million Euros.>>
direkt.se
<< ... Sonera is expected to say second-quarter pretax profit, to be released tomorrow, rose 3 percent to 120 million euros ($111 million) from the year-earlier quarter, according to the average estimate of 11 analysts surveyed by Finnish newspaper Kauppalehti and SME, the Nordic poll agency... >>
quote.bloomberg.com
------------------------------
Sonera wants four to five 3G licences
By Brett Young, Reuters
20 July 2000
Finnish telecoms operator Sonera said on Wedesday it aimed to win four to five third-generation mobile phone licences in Europe and would fund bids through asset sales rather than taking on debt.
Sonera spokesman Jyrki Karasvirta confirmed earlier comments made by Sonera official Nina Siitari to Finnish Kauppalehti Online, saying Finland's largest telecom operator aimed to win four to five licences as part of various consortia.
Sonera currently has 3G licences in Finland and Spain, is bidding for one in Germany and has expressed interest in Switzerland. It participated in the British auction but withdrew when prices there soared.
Third generation mobile phone systems, or Universal Mobile Telecommunications Systems (UMTS), will support higher data transmission rates and allow for video and other multimedia applications.
An industry source said that Sonera would soon join a consortium bidding for one of the five Italian third-generation mobile network licenses.
"Talks have progressed quite far, and a consortium could be clinched quite soon," the source said, adding it would likely happen in weeks rather than days.
Karasvirta said the company was interested in an Italian 3G licence, but that no decisions had been taken and he declined to say if or when an announcement could come.
He said asset sales would fund the bids rather than taking on debt, although no money was specifically earmarked for 3G licences.
Sonera has said it aims to list its mobile portal Zed and data encryption unit SmartTrust by end-April 2001, with its portal Sonera Plaza slated to list by end-2001.
totaltele.com
Joar |
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| To: MrGreenJeans who wrote (75) | 7/23/2000 9:01:17 PM | | From: Joar | | | | Concerning Vodafone/Sonera again:
Stumbled on this post by myself from the 2 of March:
Message 13024724
The thing was topical already then. And, that post also answers the question about the probable impact on SNRA stock price after a possible VOD involvement: up.
Joar |
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| To: AmericanVoter who started this subject | 7/24/2000 5:20:10 AM | | From: Joar | | | | Sonera sells holding in Voicestream to Deutche Telecom for USD 3.7 billion
------------------------------------------
July 24, 2000, 8:45 a.m.
Sonera to sell its holding in Voicestream to Deutche Telecom for USD 3.7 billion
Sonera Corporation (HEX: SRA, Nasdaq: SNRA) has decided to accept, for its part, the general offer of Deutsche Telekom AG of Germany to purchase the entire share capital of the US GSM operator VoiceStream Wireless Corporation (NASDAQ: VSTR).
- The deal is an excellent solution for all those concerned. The notable proceeds we receive from the VoiceStream shares will improve our possibilities of focusing on supporting the growth of our core businesses, the mobile communications and service businesses, in the future, says Kaj-Erik Relander, Deputy CEO of Sonera.
Sonera is one of the group holding a majority of the shares of VoiceStream that has agreed to vote in favor of the acquisition. This shareholder group has also agreed to retain at least 82.5 % of their holdings in VoiceStream until deal closing, expected in the first half of 2001. The transaction is subject to regulatory approvals in the U.S. and European Union, approval by VoiceStream shareholders, and customary closing conditions.
Deutsche Telekom will pay for the shares partly in cash and partly with its own shares. The price paid for one VoiceStream share is USD 30 in cash and 3.2 Deutsche Telekom shares. Based on last Friday's NYSE closing prices (NYSE: DT, USD 51.50 per share) Deutsche Telekom will pay USD 194.80 for each VoiceStream common share. The closing price of the VoiceStream share on NASDAQ on Friday, July 21, 2000 was USD 149.75 per share.
The Sonera Group owns 18,975,773 million VoiceStream shares altogether. Based on last Friday's closing prices, the total price to be paid to Sonera will thus be USD 3,696 million, in the form of a cash payment of USD 569 million and 60,722,474 Deutsche Telekom shares. The Deutsche Telekom shares that Sonera receives as consideration represent approximately 1.7% of the company's share capital. Sonera's has invested in VoiceStream a total of USD 930 million.
- The fact that we sell our VoiceStream shares will not affect our service operations strategy in the US. The USA is a major market for Sonera's developing service and technology businesses, both because of its size and its potential for large number of transactions per subscription, says Relander.
SONERA CORPORATION
Jari Jaakkola
Executive Vice President
Corporate Communications and IR
---------------------------------------------
sonera.fi
Joar |
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| To: AmericanVoter who started this subject | 7/24/2000 12:49:08 PM | | From: Joar | | | | Sonera dives on lower H1 earnings
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HELSINKI, July 24 (Reuters) - Shares in Finnish telecom operator Sonera <SRA1V.HE><SNRA.O> sank on Monday after the company reported comparable first-half results below forecasts.
At 0951 GMT, Sonera traded at 47.70 euros, down 5.4 percent and was seen falling further, dragging the HEX general index <.HEX> off session peaks. "The comparable result was clearly lower than expectations," one broker said.
Sonera posted a first-half profit before extras of 1.06 billion euros, well up on last year's 224 million but boosted by a gain of 835 million linked to the merger of U.S. operators Aerial and VoiceStream <VSTR.O>.
Without the gain, Sonera's profit was 220 million euros, which was below the market's consensus forecast for a six-month profit of 231 million euros.
The share reversed earlier gains that it had scored on news it would sell it 7.9 percent stake in U.S. mobile operator VoiceStream to Deutsche Telekom <DTEGn.DE> for $3.7 billion in cash and stock.
((John Acher, Helsinki newsroom +358-9-680 50 235, fax +358-9-680 2284, news@reuters.fi))
REUTERS
Rtr 06:02 07-24-00
nasdaq.com
--------------------------------------
Interim report in detail:
sonera.fi
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Joar |
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| To: Joar who wrote (79) | 8/13/2000 11:48:43 PM | | From: Secret_Agent_Man | | | | Orange said to bid $30 bln for Sonera
By Ivar M Simensen, FTMarketWatch 2:48:00
PM BST Aug 13, 2000
LONDON (FTMW) – British mobile phone
operator Orange is preparing a $30 billion
offer for Sonera, the Finnish operator,
according to a report in the Sunday
Telegraph.
The bid could be launched before Orange’s
planned IPO before the end of the year, the
report said.
When France Telecom [FR:013330] bought
Orange earlier this year it aimed to build a
global mobile phone business based around
Orange. Michel Bon, the CEO of France
Telecom, is believed to have been talking to
the Finnish group.
Sonera [SNRA] and Orange had already
established strategic links when they decided
to bid together for a German UMTS license.
But Orange withdrew from the group because
France Telecom is bidding for a license of its
own. More about the German UMTS auction.
Sonera has more than 60 percent of the
Finnish market and holds a strong position in
Turkey, through its stake in Turkcell. The
Finnish government currently owns 53 percent
of Sonera but is expected to sell down its
stake.
Sonera is perceived to be at the forefront of
the mobile technology and has attracted the
attention of other companies, such as
Deutsche Telekom [DE:555750]. Deutsche
Telekom is thought to have moved away from
making a bid after launching an offer for
Voicestream [VSTR] of the U.S. See full
story.
Ivar Simensen is a reporter for
FTMarketWatch in London |
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| To: Secret_Agent_Man who wrote (80) | 8/16/2000 9:36:03 AM | | From: Joar | | | | Telefónica another potential buyer for Sonera
Spanish telco Telefónica has announced its intention to enter the race to buy Finnish counterpart Sonera. According Telefónica, its mobile division Telefónica Moviles has approached Sonera about the potential acquisition and requested a valuation of the company; analysts predict Sonera to have a market capitalisation of approximately USD28 billion.
It is believed that Telefónica’s announcement is prompted by its concern for the future of Group 3G, the consortium it has formed with Sonera to bid for a 3G licence in Germany. Sonera has confirmed however that it will not enter into any negotiations until after the completion of the German licensing process. Having pulled out of the UK auction earlier this year, Telefónica needs to be successful in Germany in order to safeguard its mobile future in Europe.
The news of Telefónica’s interest in Sonera follows yesterdays press reports that UK mobile operator Orange had entered into talks with the Finnish operator. Speculation is also mounting that there may be a bid on the horizon from BT, although this has not been confirmed by the British operator.
citpubs.com
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| To: AmericanVoter who started this subject | 8/16/2000 2:52:00 PM | | From: Joar | | | | //The Netherlands sees first launch of Zed mobile services outside Finland
August 15, 2000
Sonera Zed, a wholly owned subsidiary of Sonera Corporation, today launched its mobile value added services through KPN's mobile network in the Netherlands. Zed turns the mobile device into a personalised communications and information portal. It enables flexible, easy-to-use communication, information and entertainment services, and is available in the Netherlands via the KPN network. The Zed brand was launched in Finland - the most advanced market for mobile communications in the world - in October 1999. Zed already has more than 700,000 regular users a month in Finland.
Henk Buurman, CEO Sonera Zed Nederland BV said: "As Dutch consumers have an advanced understanding of mobile technology, we are very pleased that Holland will be the first launch country in the rollout of Zed across the world. The high level of mobile penetration and positive attitude towards mobile services make the Netherlands the ideal launch pad for Zed."
Zed is currently working with operator partners in the USA (Powertel), Turkey (Turkcell), Germany (Hutchison Telecom), Singapore (Mobile One) and the Philippines (Smart Communications) as part of a considerable expansion in key global markets. The UK service is also expected to be launched later this year. Zed's further launches will include several key markets around the globe, with announcements to be made in the near future. Zed's services range from comprehensive business and travel information to leisure and entertainment guides. Currently available over an SMS platform, users can send a short, memorable key word text message to Zed, and the service will respond with the chosen information. For example, Zed can get you out of a traffic jam, tell you what you can see at your local cinema, or let you know when your football team wins an important game. By logging on to the supporting website, www.zed.com, users can personalise Zed to complement their lifestyles. Zed will deliver the information they want at the specified time they need it.
Juha Varelius, Global CEO of Sonera Zed said: "One of the most important features of Zed is that it understands the user's mobility and need for freedom. We have taken into account the various situations where the need for information arises when setting up the content and applications. Zed gathers up both international and local services that are essential to a mobile user and then provides the services in the user's local language. We believe that this is what makes Zed extremely attractive not only to our customers, but also to all our partners, both operators and content suppliers."
Later this year Zed's services will also be available via WAP in the key markets, although WAP has been in use in Finland for some time. With its unique combination of WAP and SMS services the Zed service is independent of technology and device, making it one of the most flexible portals on the market.
About Zed
Zed is a pioneer in global personalised intelligent services for wireless devices combining the best features of mobile communications and the Internet. Zed was conceived, designed and built to support and promote true mobility in both consumer and corporate environments. The range of Zed services turn the wireless device into a communications, information and mobile commerce tool. Currently Zed services are available in SMS and WAP environments, with the ability to expand the services into future technologies, GPRS and UMTS. At the end of June 2000, Zed had over 700,000 monthly users out of Sonera's 2.2million GSM customers in Finland. Of these active Zed customers, 30% had registered at Zed's Finnish website in order to personalise their services. Sonera Zed Ltd is a wholly-owned subsidiary of Sonera Corporation. Zed's headquarters are located in the UK. More information on Zed can be found at zed.com.
For further information please contact:
Hill and Knowlton UK
Katie Jones@hillandknowlton.com
Jeannette Crockett@hillandknowlton.com
Tel: +44 207 413 3000
Sonera Zed Ltd
Chembi Merser
chembi.merser@sonera.com
Tel: +44 208 606 6000
Sonera (HEX: SRA, NASDAQ: SNRA) is an international forerunner in mobile communications and mobile-based services and applications. By combining its expertise in mobile communications, the Internet and service provision, Sonera aims to develop into a global communications operator and provider of transaction and content services. The company also provides advanced data communications solutions to businesses, and fixed network voice services in Finland and its nearby areas. In 1999, Sonera's revenues amounted to EUR 1.85 billion and profit before extraordinary items and taxes was EUR 0.5 billion.
//
sonera.fi
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| To: Joar who wrote (82) | 8/18/2000 1:32:50 PM | | From: jopawa | | | | From Bloomberg:
Rate of Return
Fri, 18 Aug 2000, 1:27pm EDT
Sonera Fight May Bruise European Bond Holders: Rates of Return
By Alice James
London, Aug. 17 (Bloomberg) -- Whoever wins the fight for Sonera Oyj, Finland's largest mobile phone company, is likely to see its bonds suffer, making it harder to sell more debt to help pay the bill of at least $28 billion, analysts said.
European phone companies are already committed to paying $116 billion for high-speed cellular licenses, including $46 billion in Germany's auction, which ended today. They've also borrowed record amounts to pay for acquisitions this year, including Vodafone Group Plc's $186 billion takeover of Mannesmann AG, the second- largest merger ever.
Sonera's buyer will struggle ``especially given it is likely to be someone with a pan-European strategy who will be bidding for licenses anyway,'' said Stephen Holmes, who helps oversee 89.3 billion pounds ($134 billion) at Fleming Investment Management. ``I'm still not buying investment-grade telecom bonds.''
Finland's government won parliamentary approval to sell its 53 percent stake in Sonera, and analysts say it will want at least 65 percent cash, some $9.6 billion, based on the company's market value.
Telefonica SA, Spain's largest telecommunications company, said it's considering bidding, while Deutsche Telekom AG, Vodafone, British Telecommunications Plc, Royal KPN NV and Orange Plc are among the other potential buyers suggested by newspapers including the Financial Times.
Those companies already owe bondholders more than $105 billion, according to Bloomberg calculations, and whichever succeeds will also end up with Sonera's $2 billion of outstanding debt. Deutsche Telekom, British Telecom and Vodafone were among the winners in Germany's license auction. Sonera and Telefonica were partners in one of the winning bids.
Damage
License fees many times greater than governments originally expected have damaged outstanding debt. The 500 million euros of seven-year bonds Telefonica sold in March yield 112 basis points more than bunds, double the yield spread when they were issued. They've lost 1.2 percent, while bunds have returned 1.3 percent over the same period, according to Bloomberg calculations.
Simon Ballard, a market strategist at Bear, Stearns International, recommends ``caution towards spreads on telecom bonds'' as supply booms. Sonera's price tag ``could be too rich.'' Speculation that Sonera could soon be bought ``underlines the current trend in the European telecom industry for continued restructuring and consolidation.''
Deutsche Telekom is already paying $50.5 billion for VoiceStream Wireless Corp. of the U.S., a price that values each client at $24,217. That's more than seven times the $3,392 Vodafone paid for each U.S. customer when it bought AirTouch Communications last year, and 3.6 times what France Telecom is paying for each of Orange's subscribers.
Funding Takeovers
Companies have funded their takeovers by refinancing initial bank loans through the corporate bond market. That's the route Vodafone followed when it bought Mannesmann. BT and Telefonica plan to sell bonds later this year to pay off loans.
Phone companies in Europe borrowed $122.5 billion from banks during the first half, according to Thomson Financial Securities Data, more than double the amount raised during the year-earlier period.
Sonera won't come cheap -- its shares trade at 80 times estimated earnings, while Deutsche Telekom and many other former monopolies trade below 60. A $28 billion invoice would value each of each of its 2.24 million mobile subscribers at about $12,500.
Things could be worse, though -- one consolation for bond holders is that buying Sonera may cost a lot less than it would have earlier this year. The company's shares have halved since concern over license costs first surfaced. The shares currently fetch 44.05 euros, down from as much as 95.49 euros in March.
Falling Shares
Shares of other phone companies are tumbling too, though. All of the other successful bidders in the German license auction have declined as the costs of Europe's permits climbed.
On a six-month basis, Vodafone has dropped 14 percent, Telefonica is down 16 percent, France Telecom has slid 17 percent, British Telecom has declined 18 percent, KPN fell 37 percent, and Deutsche Telekom has tumbled 48 percent.
Europe's telecommunications shares have lost 17 percent this year, making them the second worst performing group in Europe according to Dow Jones Stoxx rankings.
Companies are paying so much for the rights to frequencies that they will struggle recoup their spending, some investors said.
``They are not just borrowing to buy licenses and acquisitions -- they need to install state-of-the-art technology'' to use those licenses, and also to keep current customers and tempt more, said Fleming's Holmes.
``The more expensive these licences get, the harder it will be to make money out of them. The big risk is that they spend billions on it and not enough people use it.'' |
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