Talktalk Telecom Share Discussion Threads

[quepassa] 29/10/2020 09:11

If you lie down with dogs, you will get up with fleas.


ALL IMO. DYOR.
QP

[1224saj] 28/10/2020 21:14

Barclays puts fair value at £1.20.It will be interesting to see if the Takeover Panel supports the 31% PI's and make sure they get the same shake as the major shareholders by having shared offered in new co if this is taken private

[paulo435] 22/10/2020 21:42

Would make more sense to me for Shell to actually go for TalkTalk instead. Clearly they are looking to diversify / compensate for declining oil revenues and need into pastures new.

[1224saj] 22/10/2020 20:21

Talk talk in bidding war with Sky and Shell to buy the post office telecoms 500,000 customers for circa 100mAlso Talk Talk have just won and intetnational best network award in the U.K. today. Very interesting times

[quepassa] 22/10/2020 15:53

By all accounts , it is somewhat unusual for a take-over target to be considering making/bidding for a significant acquisition whilst they themselves are in talks to be taken over.

ALL IMO. DYOR.
QP

[quepassa] 22/10/2020 15:35

According to breaking news from Sky, TalkTalk is contending against Shell Energy Retail to purchase the Post Office's Telecomms division at a price tag rumoured to be circa £100m.

1. Interesting/curious/confounding timing by TalkTalk as this would likely be a material event during the Tosca approach and discussions.

2. Equally interesting to see Shell trying to elbow into the sector


hXXps://news.sky.com/story/shell-a-surprise-package-vying-for-post-office-broadband-arm-12111234


ALL IMO. DYOR.
QP

[quepassa] 21/10/2020 11:08

Two weeks tomorrow since Tosca made the approach on 08/10 and no news or update from either camp.

An announcement is due by Tosca no later than 5th. November under the City Code.


The one thing known for sure is that no-one has pulled out of talks yet.


But the clock is now ticking away fast.


It would not surprise if some interesting news were forthcoming in the not too distant future


ALL IMO. DYOR.
QP

[1224saj] 20/10/2020 11:11

Paulo435, yes you are right. " Agreed to consider " Question still remains, why? There are forces at play here, Referring to an earlier post, take it private cheaply, all execs keep their position, with options when they take it public again at a higher price. I for one would want a piece of that as an investor.

[paulo435] 19/10/2020 20:56

1224, “Why have the exec with the support of Sir Charles agreed the price at 97p”

They haven’t agreed this price. It’s a preliminary and non binding offer at the moment that the board have simply agreed to consider/progress talks further. Tosca have until 5th Nov.

[shaker44] 19/10/2020 17:36

Take it private cheaply now, float it much higher later?

[1224saj] 19/10/2020 16:00

Sir Charles, the exec and PI's own 70%. Why have the exec with the support of Sir Charles agreed the price at 97p when they rejected 1.35 in June. What is the driver to take this private, when the exec are being promised no changes in the boardroom??

[commuter10] 18/10/2020 18:55

Hopefully, you're right Czar. This looks like an opening cheeky bid with the board encouraging it to bring other players into the market. Broadband is one of the biggest growth markets in the U.K. & the world with Government wanting everyone to have access to it asap. Hopefully, a bidding war will start & if Tosca want to stay in the game they will have to up the ante.

[czar] 18/10/2020 11:30

There will be other bids, the industry will not let MH walk of with this at 97p imho.

[paulo435] 15/10/2020 20:26

Not sure I see it as very aggressive Mr Blobby? Previous offer 1.35, now 97p (perhaps with telecoms being out of favour somewhat??)It certainly is not consistent with what Tosca have stated previously at all re the value of talk talk that’s what annoys me here, but nonetheless the board seems to have welcomed this somewhat and are not seeing it as hostile. Sounds to me like they are looking to prise others out from the shadows frankly speaking.

[blobby] 14/10/2020 11:17

Very quiet here. I'm holding tight to my shares and hoping for a hero to save us from this very aggressive bid.

[quepassa] 12/10/2020 09:07

Weekend FT.

Article P 16.

Being the long-standing Puppeteer is one thing.

Becoming the Puppet is another.

ALL IMO. DYOR.
QP

[1gw] 10/10/2020 16:18

There are 2 FT articles. The Lombard one talks about valuation multiples but the other one ("Why talk of a TalkTalk trade buyer was all talk") looks at possible counter-bidders and why they're perhaps unlikely to want to bid at this level. Overall, that 2nd article is pretty dismissive of the chance of a counter-bid.

[1224saj] 10/10/2020 16:07

Shaker, thank you, I've found it.Interesting view on the EBITDA multiple of 7, yes it sits above industry average, but only just.Factor in the industry best and you're looking at an offer of 1.25+

[shaker44] 10/10/2020 15:50

I can't find a way of attaching the FT link but google FT + talktalk, will find it- 'why talk of a trade deal was just talk'

[1gw] 10/10/2020 14:48

I suppose one thing that might improve the chances of an auction is if Toscafund really do see their offer as a stalking horse to put the company in play. They must be prepared to follow through with an actual offer, but it could be that what they really want is to tempt at least 2 other companies into making competing offers. If they can find a way to let that be understood by the relevant parties then who knows what might happen?

[1224saj] 10/10/2020 13:51

So many variables, it's going to be an interesting 4 weeks until the bonfire is lit

[1224saj] 10/10/2020 13:46

1Gw, I move in the same circles as the exec, so deal or no deal, private or public, they see long term value in TT. I said at the beginning of this year on this BB that I saw fair value of TT at around £1.40. Having seen where they are now in the B2B market and big aspirations for the consumer market. I would comfortably put them north of that figure for 2021/22 with improved dividends, which old Charlie boy likes

[1gw] 10/10/2020 13:43

But for the PIs I think a better outcome would be realising "full value" now through a competitive auction. As I said before, I think that's possible since there may well be some "FOMO" among Talktalk's bigger competitors, but there's the hurdle of feeling the playing field is tilted in Toscafund's favour given their existing equity position and probable implicit support of Dunstone. So anyone thinking of tabling a competitive offer has to feel they have sufficient synergies accessible, or are prepared to pay a big enough "strategic" premium, to outbid Toscafund and to persuade Dunstone to relinquish control.

Note also that Toscafund and Dunstone each have blocking votes on a scheme of arrangement, never mind a formal takeover, so a competing offer has to give Toscafund a satisfactory outcome on its existing shareholding, not just outbid it on the shares it doesn't yet own.

[1gw] 10/10/2020 13:25

That's what I understand by "together with a full unlisted share alternative", but we have to wait to see the detail of any formal offer that is actually tabled.

[feelthepain] 10/10/2020 13:21

So does that mean as a PI I can accept shares in new Co.Thanks all for input.