Vodafone raises French holding
Wednesday 08 May 1996
Analysts said the exercise of part of an option to raise Vodafone's holding to 20 per cent by the end of next year was no surprise. But the price of the deal was welcomed for the potential knock-on effect it would have on Vodafone's own valuation and that of rival Cellnet.
According to one commonly used measure, which compares the value of a mobile phone company with the number of its subscribers and their relative wealth, SFR is valued by acquisition more highly than Vodafone itself. One analyst said it created a new valuation benchmark.
Gerald Whent, chief executive, said: "Our strategy is to increase our overseas share- holdings wherever possible. The opportunity to acquire additional equity in SFR is extremely important as the French market has great potential for further development."
SFR runs one of the two mobile telephone networks in operation in France, with France Telecom running the other. Bouygues SA, which was awarded the third mobile phone licence, is expected to launch its service before the end of the year.
Vodafone now has stakes in mobile phone businesses in 14 overseas countries. These range in importance from a 95 per cent holding in Vodafone PTY in Australia to less than 4 per cent in Denmark's second operator, Sonofon.
It has now achieved its aim of balancing its UK business with an equally sized business overseas to provide growth outside the increasingly competitive market in the UK. The success of Orange in attracting subscribers to the all-important digital market has put pressure on pricing for all four UK operators.
Mobile telephony has not been the success in France that it has so far in the UK, Italy and Germany, but there is thought to be substantial demand for the service.
- 1 Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
- 2 Rihanna 'nude pictures' claims emerge on 4Chan as hacking scandal continues
- 3 Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
- 4 'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
- 5 Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Rihanna 'nude pictures' claims emerge on 4Chan as hacking scandal continues
Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
Jennifer Lawrence: Leaked 4Chan sex video branded 'fake' by users
Jennifer Lawrence 'naked sex video' will be leaked next, threatens 4Chan celebrity photo hacker
Scotland could still declare independence – even without referendum, says Alex Salmond
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Plebgate MP Andrew Mitchell called officer a 'little s**t', claim court documents 'exposing ex-Chief Whip's 'record of abusing police'
Archbishop of Canterbury admits doubts about existence of God
iJobs Money & Business
£65000 Per Annum Benefits + bonus: Clearwater People Solutions Ltd: If you are...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree are a global FTSE 250 ...
£20000 - £25000 per annum + OTE £40000: SThree: As a Recruitment Consultant, y...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...