18.96 0.00 (0.00%)
After hours: 4:00PM EDT
|Bid||18.94 x 1200|
|Ask||18.95 x 900|
|Day's Range||18.80 - 19.30|
|52 Week Range||13.96 - 21.90|
|Beta (3Y Monthly)||1.77|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||21.60|
(Bloomberg) -- Billionaire cable mogul John Malone’s plan for a $6.4 billion sale of UPC Switzerland fell apart after would-be purchaser Sunrise Communications AG concluded its shareholders won’t support the move.Sunrise Chief Executive Officer Olaf Swantee said Tuesday in an interview that the deal was “dead.” The company had earlier called off a shareholder vote scheduled for Wednesday on a rights offering to fund the purchase. UPC parent Liberty Global Plc has yet to say it has walked away.Liberty Global Chairman Malone had agreed in February to sell the unit, raising the prospect that he would rake in a heftier cash pile to support a range of activities, including potential shareholder payouts and acquisitions in western Europe. But Freenet AG, Sunrise’s biggest investor, railed against the purchase price and an influential proxy advisor came out against the deal, wiping out the possibility of success.This is the second setback this year for the man who sold cable provider Tele-Communications Inc. to AT&T Inc. for $48 billion in 1999 -- his attempted purchase of Millicom International Cellular SA fell apart in January on price concerns. Liberty Global shareholders may also need to recalibrate their expectations for the prices they can expect for future transactions.“Malone’s not had many failures in his career and this is a reputational setback if nothing else,” said Mirabaud analyst Neil Campling. “Liberty Global may have to reset some of its ambitions around the values it can achieve for future M&A.”The transaction, which would have created a bigger player to compete against Swisscom AG, valued UPC at 10 times adjusted earnings before interest, taxation, depreciation and amortization. Sunrise had agreed to finance the deal through a mix of debt and about 4.1 billion Swiss francs ($4.2 billion) raised from a rights issue. Freenet balked at this mix. Eventually the rights issue was cut to 2.8 billion Swiss francs, and last week Liberty Global pledged as much as 500 million francs to support the capital increase.These changes weren’t enough to earn the approval of proxy advisor Institutional Shareholder Services, which said a fair value range for UPC was 4.6 billion Swiss francs to 5.2 billion Swiss francs.Examining OptionsLiberty Global is still examining its options within the current share purchase agreement, said a spokesman for the company. That agreement expires Feb. 27.An attempt by Liberty Latin America to take over Millicom for $7.6 billion in cash and stock fell through after the target’s executives were said to have demanded changes to the terms of the transaction, including a higher premium and cash component. The unwinding of the Swiss effort -- Freenet CEO Christoph Vilanek said in a phone interview Tuesday that there’s no way to rescue it -- sends a signal to European companies considering participating in industry consolidation.An end to the deal “probably tells telecom management in Europe that paying a 10 to 12 times Ebitda multiple on a transaction isn’t getting support from investors,” Stephane Beyazian, analyst at Mainfirst, said Monday.Sunrise shares rose as much as 4.6%, the most since Jan. 3, while Liberty Global’s Class A shares sank as much as 5.5% in early New York trading, the biggest drop since May. Standalone StrategySwantee said Sunrise has no immediate plans to consider alternative acquisitions, and the company will revert to its standalone strategy, “which fortunately has been working well.”He said earlier this month that a management shake-up at the Swiss company was likely if the deal doesn’t go through. When asked Tuesday if he would quit, he said “our priority now is to stabilize the company.”Swantee will have to do so in a competitive environment that has Swiss carriers locked in an aggressive discounting war. The UPC purchase would have eased pricing pressure by reducing the number of players.“The cancellation is a consistent step given the shareholder resistance, but also a missed opportunity to consolidate the Swiss telecom market,” said Mark Diethelm, analyst at Vontobel Securities.Liberty Global is not short of cash - it will still have about $9 billion in proceeds from sales of businesses to Vodafone Group Plc and Deutsche Telekom AG, said Pivotal Research analyst Jeff Wlodarczak.Tuesday’s outcome may complicate other potential deals at London-based Liberty Global, such as acquisitions involving partially-owned Belgian unit Telenet or a Dutch joint venture with Vodafone.Telefonica SA’s British mobile-only company O2 has long been speculated as a neat fit for the fixed-line-only network at Virgin Media, which now makes up the majority of Liberty Global’s sales. Meanwhile, Liberty executives are preparing to spend money extending their U.K. broadband reach in a land-grab against BT Group Plc.UPC Switzerland has been Liberty Global’s worst-performing unit, and Malone could attempt to find another partner -- Salt, the mobile operator controlled by French billionaire Xavier Niel, is a potential candidate.“It seems to us that an absence of compromise and trust sank this deal,” Berenberg analyst Usman Ghazi wrote in a note. “Liberty Global was unwilling to address the legitimate grievances of Sunrise shareholders. Those who intended to vote against it were merely saying that the merger need not be pursued at any price, and this was a judgment call that we sympathized with.”(Updates with Liberty Global shares)\--With assistance from Stefan Nicola.To contact the reporters on this story: Albertina Torsoli in Geneva at email@example.com;Thomas Seal in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Rebecca Penty at email@example.com, Anne PollakFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- If activist shareholder Elliott Management Corp. has its way, more than 30,000 AT&T Inc. workers could lose their jobs or face reductions in wages, according to a new estimate from the Communications Workers of America union.Most of the impact on workers would come from divestitures of DirecTV and AT&T’s landline business and closures of the company’s retail locations, if the company follows Elliott’s suggestions, said the CWA, which represents more than 100,000 AT&T employees.In September, billionaire Paul Singer’s New York hedge fund disclosed a new $3.2 billion position in AT&T, along with a plan to boost the telecom and media giant’s share price by more than 50% through asset sales and cost cutting. The fund hasn’t specifically called for job cuts. AT&T has said it has no plans to dispose of DirecTV, but Elliott could potentially engage in a proxy battle to push its agenda through.“If Elliott doesn’t get their way, they are going to do a proxy fight on the board, and then any or all of these things could happen,” said Christopher Shelton, president of the CWA. “We can’t leave that to chance, because that’s 30,000 jobs.”The Teamsters Union said Wednesday that it “stands in solidarity” with the CWA and its members “as they fight back against plans by a vulture capitalist hedge fund that would harm the company’s workers.” The Teamsters represent 1.4 million people.Elliott and AT&T didn’t immediately respond to requests for comment.Among the potential cuts the CWA sees:DirecTV employs about 10,000 workers represented by the CWA and the International Brotherhood of Electrical Workers whose jobs could be at risk if AT&T decides to divest the business, said Nell Geiser, assistant director of research at the CWA. Some of these jobs are at call centers, while others include technicians who do home installations and tech support.The landline business is supported by about 11,000 people whose jobs may be at risk and who work in rural areas in 26 states, the CWA estimated.Were AT&T to match Verizon Communications Inc. in the number of branded stores operated by third-party dealers, rather than by the company, it would close 970 corporate locations, the CWA said. It might close some additional corporate outlets due to geographic redundancy. In total, these moves would eliminate more than 8,500 retail sales workers, according to the CWA.If AT&T sells its operations in Puerto Rico and the Virgin Islands to Liberty Latin America Ltd. as planned, that could affect about 900 union jobs, the CWA said.The estimates don’t include workers who aren’t yet part of a union, “such as the tens of thousands at WarnerMedia,” the CWA said.These estimates should be taken with a grain of salt. In September, AT&T said DirecTV isn’t for sale, for example. Earlier this month, presidential candidate Elizabeth Warren called on AT&T to reject Elliott’s proposal as it would result in loss of jobs.(Updates with Teamsters comment in fifth paragraph.)\--With assistance from Scott Deveau and Scott Moritz.To contact the reporter on this story: Olga Kharif in Portland at firstname.lastname@example.orgTo contact the editors responsible for this story: Nick Turner at email@example.com, John J. Edwards III, Rob GolumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shares of AT&T (T) have surged 31% in 2019 to easily top its industry's 8% average climb and the S&P 500's 17% jump. So will AT&T stock continue to climb after it reports its Q3 2019 earnings results?
(Bloomberg) -- AT&T Inc. agreed to sell its operations in Puerto Rico and the U.S. Virgin Islands to Liberty Latin America Ltd. for $1.95 billion in cash, taking a step toward reducing debt amassed in one of 2018’s biggest merger deals.The Dallas-based telecom and media giant has been trying to strengthen its balance sheet since taking over Time Warner Inc. last year for $85 billion. “This transaction is a result of our ongoing strategic review of our balance sheet and assets to identify opportunities for monetization,” John Stephens, AT&T’s chief financial officer, said in a statement.AT&T was exploring the possible sale of the Puerto Rican operations over the summer, though it then expected to reap as much as $3 billion from the transaction, a person familiar with the matter told Bloomberg News.“Reports that we originally sought $3 billion for these assets are not accurate,” an AT&T spokeswoman said Wednesday. “That was never our expectation and that valuation wouldn’t have reflected the value of the assets or the market for such assets.”AT&T is under pressure from activist shareholder Elliott Management Corp., which last month started urging divestments of some assets and other management changes. The company had already sold its stake in the Hulu streaming service and its New York offices in the debt-reduction effort, reaping a total of $3.6 billion.What Bloomberg Intelligence Says“The sale of AT&T’s operations in Puerto Rico and the U.S. Virgin Islands will further relieve pressure on the company to delever and allow for the allocation of more free cash flow to share buybacks in 4Q.”John Butler, telecom analyst.Click here to read the research.In all, including Wednesday’s deal and cash-flow-management steps, AT&T said it has raised a net $11 billion this year, exceeding its goal of $6 billion to $8 billion. The company reports its third-quarter earnings Oct. 23 and has an investor day scheduled for Oct. 29 to offer an update on its WarnerMedia entertainment and media strategy.For Liberty Latin America, part of U.S. cable pioneer John Malone’s global empire, the deal furthers regional expansion ambitions. The AT&T assets in the sale include cellular, landline and internet businesses. Denver-based Liberty operates in more than 20 countries around Latin America and the Caribbean.AT&T said it plans stock buybacks in the fourth quarter, along with more debt cuts. The company’s shares were modestly higher in New York trading Wednesday, having gained 31% this year through Tuesday. Liberty Latin America’s class-A shares rose as much as 6.1% Wednesday.The Wall Street Journal reported on the coming sale earlier Wednesday.(Updates with AT&T statement on valuation in fourth paragraph.)\--With assistance from Scott Moritz.To contact the reporter on this story: John J. Edwards III in Boston at firstname.lastname@example.orgTo contact the editors responsible for this story: Nick Turner at email@example.com, John J. Edwards III, Timothy AnnettFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
("Liberty Latin America" or “LLA”) (NASDAQ: LILA and LILAK, OTC Link: LILAB) today announced it has entered into a definitive agreement to acquire AT&T Inc.’s (AT&T) wireless and wireline operations in Puerto Rico and the U.S. Virgin Islands (the “Acquisition Assets”). In the all-cash transaction, the Acquisition Assets are valued at an enterprise value of $1.95 billion on a cash- and debt-free basis.
We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is...
Liberty Latin America Ltd. today announced it has completed the acquisition of the remaining 12.5% of United Telecommunication Services N.V.
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
("Liberty Latin America") (NASDAQ: LILA and LILAK, OTC Link: LILAB) today announced the closing of its previously announced offering of 2.0% Convertible Senior Notes due 2024 (the “Notes”), in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The Company sold $402.5 million aggregate principal amount of the Notes, including $52.5 million aggregate principal amount of the Notes sold pursuant to the initial purchasers’ exercise in full of their 13-day option to purchase additional Notes from Liberty Latin America in connection with the offering. The Notes are general unsecured senior obligations of Liberty Latin America, bear interest at a rate of 2.0% per annum, payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2020, mature on July 15, 2024 (unless earlier repurchased, redeemed or converted), and are convertible into Liberty Latin America’s Class C common shares, cash, or a combination of the Class C common shares and cash, at Liberty Latin America’s election.
("Liberty Latin America") (NASDAQ: LILA and LILAK, OTC Link: LILAB) today announced the pricing of $350 million aggregate principal amount of its 2.0% convertible Senior Notes due 2024 (the “Notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Liberty Latin America has also granted the initial purchasers of the Notes a 13-day option to purchase up to an additional $52.5 million aggregate principal amount of the Notes in connection with the offering. The Notes will be general unsecured senior obligations of Liberty Latin America, bear interest at a rate of 2.0% per annum, payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2020, mature on July 15, 2024 (unless earlier repurchased, redeemed or converted), and be convertible into Liberty Latin America’s Class C common shares, cash, or a combination of shares and cash, at Liberty Latin America’s election.
("Liberty Latin America") (NASDAQ: LILA and LILAK, OTC Link: LILAB) today announced that it intends to offer, subject to market and other conditions, $350 million aggregate principal amount of Convertible Senior Notes due 2024 (the “Notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Liberty Latin America also intends to grant the initial purchasers of the Notes a 13-day option to purchase up to an additional $52.5 million aggregate principal amount of the Notes in connection with the offering. The Notes will be general unsecured senior obligations of Liberty Latin America, pay interest semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2020, mature on July 15, 2024 (unless earlier repurchased, redeemed or converted), and be convertible into Liberty Latin America’s Class C common shares, cash, or a combination of shares and cash, at Liberty Latin America’s election.
("Liberty Latin America" or "LLA") (NASDAQ: LILA and LILAK, OTC Link: LILAB) today announced that it has appointed Kerry Scott, Chief People Officer and SVP, to lead its Operations Center on site in Panama City, Panama. Balan Nair, President and CEO of Liberty Latin America, said, “Kerry has been a tremendous asset to my Executive Team since the establishment of our company in January 2018. As part of this move, Scott will maintain all of her current responsibilities, but will also be in charge of providing cultural leadership to the team located in the Operations Center and building upon Liberty Latin America’s already strong presence in Panama.
Today we will run through one way of estimating the intrinsic value of Liberty Latin America Ltd. (NASDAQ:LILA) by...
Despite higher revenues year over year, Sprint's (S) fiscal Q4 bottom line disappoints due to non-cash goodwill impairment charge of $2 billion.
Liberty Latin America Ltd. today announced plans to release its first quarter 2019 results on Tuesday, May 7, 2019 after NASDAQ market close.
Incremental contribution from WarnerMedia assets and solid wireless business enable AT&T (T) to beat first-quarter 2019 earnings estimates.