Whampoa is content to sit back and wait until 2006 when the Convertible Notes will be swapped for shares, giving Whampoa a near 90% position by stealth.
As it is, Whampoa already holds a deemed interest in Barry Roberts-Thomson's shares through a share mortgage facility, under which Whampoa has either lent money to BRT or guaranteed some of BRT's holding position.
Effective privatisation will then occur, but without the need for any takeover premium.
As for acquisition targets, one needs to look more closely at whether Vodafone's continuing business status in Australia is viable. Certainly, Vodafone NZ is profitable, but within the APAC region, Vodafone Australia continues to represent a severe drag on Vodafone's global earnings.
Going forward, if Vodafone were to invest in 3G, then Vodafone UK would need to inject a further $1-1.5B into the Australian operations without any guarantees on a profit return before 2010-12.
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