European telecom operators made headlines last week with involvement in several potential mergers and buyouts.
The United Kingdom’s largest cellular operator, Vodafone Group plc, said it agreed to buy the mobile phone unit of Cable & Wireless Communications plc, M.C. Mobile Services. The $35.5 million transaction will add 120,000 subscribers to Vodafone’s network, most of which are corporate accounts.
According to the agreement, the two will also work to develop both mobile and fixed-line service solutions for corporate customers.
Meanwhile, The Financial Times reported Cable & Wireless’ takeover bid for Japanese telecom operator International Digital Corp. was rejected amid concerns over foreign investment in Japanese markets. Although Cable & Wireless is a founding shareholder in IDC, the company reportedly is in favor of Nippon Telegraph and Telephone’s takeover offer, which is owned mostly by the Japanese government.
Finally, in the ongoing takeover drama of Telecom Italia Spa, Deutche Telekom now is the leading potential candidate to save the company from Olivetti Spa’s hostile takeover bid. The Financial Times reported the two companies have been in discussions for about a month. However, Italy’s government has long voiced concern over allowing Italian markets to fall into foreign hands.
