Mergers and Acquistions News
Categories: Telecoms
November 28th 2008, 15:03PM
Some telecoms companies are looking to the emerging markets to make acquisitions the businesses lose value.
Firms which have available funds are likely to be in a good position to make a purchase, if they take a long-term view of the market, Phillip Kendal, an analyst at Strategy Analytics tells ITNewsAfrica.
Vodafone has recently done just that, taking over Vodacom, based in South Africa, with which it plans to expand into the Nigerian market.
The source reports that until recently the high price tag attached to any takeover bid put many firms off, but the global recession has solved much of this issue.
Communications firm Telenor has recently paid $1.1 billion (£0.7 billion) for Unitech Wireless, which some felt was a high price.
However, the firm states it will make the revenue back as eight million wireless users are being added each month in the country, which the company is competing for.
The wireless telecom gear market is facing a fall as operators reduce their funds in the recession and low price Chinese sellers enter the market, Reuters reports.
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