FIVE at FIVE: Rolls-Royce Emirates spat; McDonald’s abuse claims; Vodafone Italy sale?; FTSE 100 up; Glencore’s coal bet
Here’s Proactive’s round-up of the top financial stories of the day, with helpful links taking you directly to the news
Company
LON:VOD
Vodafone Group PLC is a mobile telecommunications company, with a significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States.
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Here’s Proactive’s round-up of the top financial stories of the day, with helpful links taking you directly to the news
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At the close, the FTSE 100 was up 14.64 points, 0.2%, at 7,440.47 while the FTSE 250 leapt 622.48 points, 3.5%, at 18,536.13
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The FTSE 100 index closed down 5.67 points, 0.1%, at 7,321.72 while the FTSE 250 ended up 65.46 points, 0.4%, at 17,083.05.
Vodafone said an outage had led to a jump in complaints, which saw it face more dissatisfaction than rivals in the spring
Spain was Vodafone's worst-performing segment in 2023
Project Kuiper’s is expected to be available to first customers in 2024, but the first satellites have not yet been launched
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London's blue-chip index closed 0.2% higher at 7,679, building on last week's gains
Most networks charge people approximately £2 a day to use their phone abroad, said Ofcom
Germany and Three UK are points of focus for stakeholders
The merger is expected to face a tough stance from the UK Competitions & Markets Authority, but some sector experts suggest there is a fair chance at getting a green light
If not it could be a very boring day for business news
Apart from the two companies, there only seems to be one potential supporter of the merger - though will they have any influence?
UBS predicts reveneus in 2028 will be just 1% higher than in the year just ended
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The FTSE 100 index was underwater at the closing bell, finishing 0.3% lower at 7,752 points
Analysts see significant upside on Vodafone stock should the deal progress
Institutional investors back Margherita Della Valle's full-time appointment, according to Sky news
Emirati group e& also ups stake in debt-heavy British telecoms group
Liberty Global has bought almost 5% of Vodafone, anticipating it will return to fortune this year
"While some investors might prefer a break-up, continuity is far from unappealing"
Shares in the telco hit a five-year low last month
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Here’s Proactive’s round-up of the top financial stories of the day, with helpful links taking you directly to the news
VOD is a big-ticket income stock with a big risk factor
The FTSE 100-listed telco forecast full-year adjusted EBITDA at the low end of guidance between €15.0bn-€15.2bn
Jefferies said Vodafone "faces intractable headwind" as it lowered its forecasts for the telecom company
Vodafone itself seems focused on selling bits off to get its debt down
JP Morgan analysts say the deal is negative for the telco's investors.
A consortium led by KKR and GIP will buy up to half of Vodafone's 81.7% stake in Vantage and the joint venture will offer to buy out the minority shareholders at a price of €32 per share.
The analysts noted that, though under pressure to execute on the many options Vodafone has in place to crystalise value and improve its balance sheet, market conditions may be favourable mid-term
Nick Read, Vodafone chief executive, commented: "This significant infrastructure investment supports the country's social, economic and digital development and the broadband ambitions of the German government as part of Europe's Digital Dec
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The UK index of leading shares finished up around 61 points, or 0.90%, at 6,920
A Vodafone/Three UK mobile merger would consolidate the UK mobile market to three network operators with similar market shares
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At the close, the FTSE 100 was up 0.2%, or 15 points, to end the day at 6,909 points
"It is essential that the industry puts its customers first, and focuses on what more it can do to help support them,” said Lindsey Fussell, Ofcom’s networks and communications group director
'Significant volatility' will remain a feature into next year
The French billionaire owns telecoms provider Iliad and is a long-term investor in the telecoms sector across several European and African markets
KKR & Co. and Global Infrastructure Partners are among those firms competing for a stake in Vodafone's wireless towers business.
“The combined entity will increase competition and have greater access to investment to further the digitalisation of Hungary," said Vodafone CEO Nick Read
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At the close, the UK blue-chip index was down 16.58 points, or 0.2% at 7,533.79, well above the session low of 7,491.26 but below the day’s peak of 7,550.37
The mobile phone operator will work with Vantage Towers to tap into mainland Europe where sales revenue lagged
Deutsche’s ‘buy’ recommendation suggests more than 70% upside to the current market price of around 127p.
Headwinds in Germany are likely to offset any other improvements, according to the note
Net debt stood at €41.6bn at year-end, down from €40.5bn a year earlier
Results are also scheduled from Britvic, C&C Group, DCC and Tritax Eurobox
The telecoms group has long been criticized for capex warnings, operational disappointment, excess complexity and a poor M&A record “making it a prime target for activism”
A 9.8% stake was purchased for a premium price of 129p a share, or US$4.4bn, making it the FTSE 100 telecoms group's largest shareholder
Jefferies cut its rating as it sees higher energy and wage bills being an issue that management will need to deal with
Vodafone is under pressure from activist fund Cevian Capital to simplify its business, according to the Financial Times
Energy costs are likely to be a drag of at least €150mln in each of fiscal 2023 and 204.
The UK telco warned in February it faced a €150mln energy headwind but gas prices have since risen by 50%
The offers are for a majority stake in the company that was listed in Frankfurt last year
The 28.1% stake in total was valued at around US$2.6bn based on the last closing price
Reports of consolidating business in Europe have intensified over the last week