after the setback in acquisition of t-mobile U.S. wireless carriers, Japan’s softbank CEO Masayoshi Son (Masayoshi Son) have turned to the European, and began to pay special attention to vodafone?
Vodafone (Vodafone Group) is the international mobile phone operators, it is also one of the world’s largest mobile communications network company, headquartered in Berkshire, UK new bliss (Newbury) and Dusseldorf, Germany.
Japanese media according to an unnamed softbank personage, speculates that softbank might in recently contact vodafone, the UK mobile communication company. Vodafone is the world’s second largest wireless carriers, its users is second only to China mobile.
softbank with vodafone has a long history of origin. Softbank, in 2006, $15 billion deal to buy the vodafone operating company in Japan. In 2012, vodafone underweight softbank shares worth $5 billion, accordingly to reduce their overseas “territory”.
with the help of the deal from Internet service providers to become Japan’s third largest mobile phone operator. British Enders Analysis, market research institutions (Enders Analysis), said analyst barfoed’s “softbank when it comes to the deal, just say oneself to what extent the good vodafone’s Japanese business.”
since last year, there are rumors that the two companies will be combined. Vodafone will Verizon wireless sold a 45% stake for $130 billion to the United States after Verizon telecom, vodafone, the UK market valuations are reduced by half. The giant American telecom AT& T last may agree to a price of $49 billion acquisition of satellite operators DirecTV, become pay-tv and giant in the field of wireless phones. Since then, softbank, also hope to actively to make acquisitions, in order to expand in the global market share.
according to an unnamed analysts said, because softbank mainly focus on its scale and improvement of the network, so maybe for its acquisition of vodafone is very meaningful. “Softbank aspires to become the world’s largest telecoms operator, which requires them to buy some big companies, while vodafone will be a good choice.”
vodafone 2600 MHZ radio spectrum of assets to softbank has a lot of appeal, because softbank is committed to using the same spectrum to develop the fourth generation of wireless technology.
at present Europe’s wireless telecommunications industry is in a state of weakness, so maybe for softbank is an opportunity to buy. Behind the network, the intense price competition, the strict regulation and consumer confidence in the downturn, these unfavorable factors together, all with a heavy blow to the European telecom company’s earnings. Prompted the company began to integrate scattered industry competition. For example, in order to support its ailing European business, vodafone has spent tens of billions of dollars in Germany and Spain in asset acquisitions.
last month, some reporters asked Mr. Son how European telecom market, and the European telecom market is so attract people’s attention. Masayoshi son joking replied: “on the other hand, Europe is a crowded and competitive market. The European market, on the other hand, poor network. Otherwise I will no longer say more.”
although softbank didn’t immediately to make any comment on rumors acquisition of vodafone, vodafone also refused to make any reply, but most observers keep tend to be approved by the attitude to this matter.
softbank to its t-mobile Sprint subsidiary with its subsidiaries in the United States, which is the third and fourth largest mobile operator in the United States together, but strongly opposed by regulators last month, so the plan ended in failure.
the Enders Analysis, market research institutions (Enders Analysis), an analyst at barfoed’s (Barford) said: “the Vodafone in Europe (Vodafone) is essentially a traditional carrier, you can’t transplanted softbank, the Japanese mode to Europe; Similarly, the Japanese model of the softbank transplanted to the United States is also unrealistic.”
for softbank, in the United States that there was no hope of market integration, so it might consider looking for acquisitions within Europe. However, Mitsubishi UFJ Securities analyst Ivan? Palacios (Ivan Palacios) said that softbank must show that it can be an effective strategy in Europe. In the European market, telecom operators have been struggling to compete for the realization of capitalization of its assets.
bought vodafone may need to spend $100 billion in assets, it is difficult to digest for softbank. And the year to October in order to acquire the wireless products distributor research majority stakes in companies, softbank has spent more than $1.26 billion.
“we don’t think that softbank at the moment have the desire or have the ability to buy large companies such as vodafone.” Mitsubishi UFJ Securities (Mitsubishi UFJ Securities), an analyst at rick? Marty pull (Rick Mattila) said. “Softbank need to adjust the strategy, assets and away from the Internet. And acquisition of vodafone, seems to have been with the company’s trend apostasy chi and the farther the line.”
an unnamed analysts said the “softbank is now busy with its us subsidiary Sprint events. Acquisition of vodafone may become very difficult. Though not without hope, but probably not now.”
Palacios said softbank’s financial flexibility is “limited”, especially after its takeover of the Sprint, softbank has appeared on the balance sheet debt problems, and acquisition of vodafone and need a lot of money.
Mattila also said that if softbank want buy vodafone, the only funding way is to sell it in about a third of the shares held by the alibaba, in theory it is worth $60 billion. However, it is difficult to make this decision for softbank, Mr. Son has made it clear that he has no intention of selling alibaba stake.
Mattila also said that compared to buy each other, softbank is more likely to form an alliance and vodafone company.