We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Project Telecom | PJT | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | - |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| Top Posts |
|---|
Posted at 14/7/2003 12:42 by banj Project Telecom leaps on bid approach Fri Jul 11 15:45:12 BST 2003 Project Telecom's downturn in fortunes looks like becoming someone else's opportunity after the mobile services provider admitted today that it has had a bid approach. The news sent shares (PJT) up 7p to 56p, well ahead of the 34p lows they found after the company issued a profits warning in April. The shares have been rising rapidly this week, prompting Project Telecom to admit that it has received a preliminary approach that may or may not lead to an offer for the company. The company would not say any more today, but it looks as though someone was looking to take advantage of the slump in the company's valuation. Until April, Project Telecom had appeared to be building a very successful business providing mobile voice and data services to business customers. Project Telecom offers advice, consultancy and support to both large and small businesses wanting to provide the right equipment to their workforce for both mobile voice and data services. The company does not own any of its own infrastructure, but buys airtime wholesale and it is Project Telecom that manages the relationship with the corporate customer. And this is precisely where the problems have come from. As competition between the mobile operators has got tougher, so they have begun to undercut each other, and consequently Project Telecom, which buys airtime from Vodafone and mmO2. Chief executive Tim Radford told Citywire in April that: 'There has always been a fear that we could get squeezed at some point, and after ten successful years of growth we've had a tough couple of months.' Radford said the 'squeeze' was coming from T-Mobile and Orange in particular, both of which are aggressively slashing prices to entice business customers away from the likes of Vodafone and O2, and in turn therefore Project Telecom. As part of the aggressive price wars, and in answer to the Competition Commission's ruling that the operators had to cut their cut their termination charges - the fees they levy on other operators for a call made to their networks the operators cut the connection commissions they were paying to Project Telecom 'significantly,' in some cases by more than ?50 per customer the company said. Last year Project Telecom turned in profits for the year to December of ?14 million before goodwill and exceptionals on its continuing businesses, and had been expected to grow that to around ?18.7 million this year before warning in April that profits for this year would be flat on last year. So who might be interested in buying the company? Well the most obvious candidates would be one of the mobile operators themselves. Since there is an ever decreasing amount of new business to be won, mobile operators are looking to increase the amount that existing customers spend with them, and attempt to prevent customers defecting to the competition. To do that, they really need to 'own' the relationship with the customer. Project Telecom's business users would be of great interest to any of the operators. Vodafone might boast a huge market share, but the majority of its customers are private customers. The business market is the one that ultimately will have more use for the precious data services that make optimum use of the new 3G networks. Vodafone and O2 already have a relationship with Project Telecom, so either might be a candidate. Equally Orange and T-Mobile are getting aggressive in their quest for market share, and then there's 3, the new entrant from Hutchison, which might want a ready-made business audience for its 3G services. As the company said, it is early days. Citywire Verdict: In April, Citywire advised investors to let the dust settle and see how things looked in a few months. Shares were then 41.5p. Clearly, if the bid, or any other bid, comes to nothing, the company will have a fight on its hands this year. But at this early stage, it looks worth hanging on for further news. continue to hold IMO ;-) |
Posted at 14/3/2002 17:14 by tony979 That huge deal was announced yesterday when stock was sold to institutional investors at 75p |
Posted at 19/1/2002 21:47 by isitsafe Lw - agreed, buying in the 70's looks good now. Even if the co decides to raise cash on the back of strong results institutional investors will want a decent premium on the original 70 float price. Still some short term risk from wider telco sentiment tho. |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Hot Features
Premium
