Posts for Ticker ‘CN’

China’s Complicated Telecom Mergers (CHU, CN, CHA, QCOM)

There is a complicated merger in the Chinese telecom market, which is part of the government mandate to consolidate a fragmented telecom industry in China.

China Unicom Ltd. (NYSE: CHU) has formalized a deal that came out over the weekend to acquire China Netcom Group Corp. (NYSE: CN) in a deal that puts the debt and equity value around $56.3 Billion.  In a separate deal, China Telecom Corp. (NYSE: CHA) will acquire China Unicom parent’s CDMA network for roughly $15.86 Billion in cash.  China Netcom will be delisted and will become a wholly-owned subsidiary of China Unicom.

Recently, China’s government had mandated a restructuring of the country’s six major telecom operators where these will become three entities.  Interestingly enough, China believes that the more consolidated players will create more competition and prevent any single carrier from a winner take all position. 

China Unicom is the major CDMA service provider in China, and it has some 42 million subscribers as of the end of 2007.  Because these stocks were all tied up in a coming deal, some of the shares had been halted on local exchanges while these terms were being worked out.

While it may be hard to interpret or play play the consolidation waves in China’s telecom mergers, one winner of this merger will likely be Qualcomm Inc. (NASDAQ: QCOM) because it wins on every new CDMA user it gets.  This of course assumes that the other deals don’t take away from the company’s CDMA and WCDMA user base, and that is not necessarily an assured outcome.

You can join our open email distribution list to hear about other mergers, IPO’s, secondary financings, restructurings, and other special situations.

Jon C. Ogg
June 2, 2008

Posted on: June 2, 2008 – 7:12 am in China, Mergers and Buy Outs, Telecom, , , ,

China To Revamp Its Entire Mobile Industry (AAPL)(CHU)(CH)(CHL)(MOT)(NT)(ERIC)

In a reorganization of China’s telecom industry, which would be almost unimaginable in the West, the country plans to merge two of its largest mobile companies, China Netcom (CN) and China Unicom (CHU). The new firm will be issued on of the three high-speed wireless licenses which the government plans to grant.

China’s two largest phone companies, China Mobile (CHL) and China Telecom, will receive the other two contracts.

According to Reuters, the 3G development will "unleash billions of dollars in spending for network gearmakers." Those companies would include Nokia (NOK), Nortel (NT), Ericsson (ERIC),and Motorola (MOT).

The news many also be a benefit to handset makers as they rush to offer products for the new 3G networks. Apple (AAPL) has still not found a home for the iPhone in China. More competition among carriers will give it a greater chance to strike a good deal. A new market could also give some aid to Motorola’s flagging handset sales and to rivals Samsung and Sony Ericsson.

Douglas A. McIntyre

Posted on: May 24, 2008 – 5:59 am in China, , , , , , ,

Asia Markets 5/23/2008 (DCM)(CHL)(CN)

Markets in Asia were mixed.

The Nikkei rose .2% to 14,012. Komatsu fell 3.3% to 3210. Docomo (DCM) rose 2.6% to 161000.

The Hang Seng fell .7% to 24,861. China Mobile (CHL) fell 3.2% to 126. China Netcom (CN) rose 11.9% to 18.48.

The Shanghai Composite fell .4% to 3,473.

Data from Reuters

Douglas A. McIntyre

Posted on: May 23, 2008 – 2:27 am in International Markets, , ,

Asia Markets 5/19/2008 (CN)(SNP))

Markets in Asia were narrowly mixed.

The Nikkei rose .4% to 14,270. Kobe Steel was up 4.6% to 344. Mitsubishi Corp was up 4.8% to 3870.

The Hang Seng rose .2% to 25,661. China Netcom (CN) was down 3.5% to 23.25. China Petroleum (SNP) was down 1.7% to 7.54

The Shanghai Composite was down .5% to 3,605.

Data from Reuters.

Douglas A. McIntyre

Posted on: May 19, 2008 – 2:28 am in International Markets, ,

Europe Markets 5/15/2008 (SNE)(CN)(SNP)

Markets in Asia were narrowly mixed.

The Nikkei rose .9% to 14,252. NEC rose 5% to 551. Sony (SNE) rose 8.7% to 5270.

The Hang Seng fell .9% to 25,357  China Netcom (CN) fell 6.7% to 23.60. China Petrolem (SNP) fell 2.8% to 7.28.

The Shanghai Composite fell .6% to 3,637.

Data from Reuters

Douglas A. McIntyre

Posted on: May 15, 2008 – 2:31 am in International Markets, , ,

Asia Markets 5/6/2008 (CN)(SNP)

Markets in Asia were mixed with Japan closed for a holiday.

The Hang Seng rose .3% to 26,262. China Netcom (CN) rose 2.5% to 25.19. China Petroleum (SNP) fell 2.6% to 8.48.

The Shanghai Composite fell .7% to 3,734.

Data from Reuters

Douglas A. McIntyre

Posted on: May 6, 2008 – 2:23 am in International Markets, ,

Asia Markets 4/30/2008 (SNP)(HMC)

Markets in Asia were mixed.

The Nikkei fell .3% to 13,450. Dentsu fell 4.4% to 239000. Honda (HMC) fell 3.8% to 3300.

The Hang Seng fell .3% to 25,836. China Netcom (CN) fell 2.7% to 23.5. China Petroleum (SNP) rose 2.9% to 8.46.

The Shanghai Composite rose 4.8% to 3,693.

Data from Reuters

Douglas A. McIntyre

Posted on: April 30, 2008 – 2:28 am in International Markets, , ,

Asia Markets 4/29/2008 (CN)(SNP)

Markets in Asia were mostly higher.

Tokyo was closed for a holiday

The Hang Seng rose 1% to 25,925. China Netcom (CN) rose 3.9% to 24.05. China Petroleum (SNP) rose 2% to 8.22.

The Shanghai Composite rose 1.4% to 3,523.

Data from Reuters

Douglas A. McIntyre

Posted on: April 29, 2008 – 2:12 am in International Markets, ,

Asia Markets 4/16/2008 (SNE)(DCM)(CN)(SNP)

Markets in Asia were mixed

The  Nikkei rose 1.2% to 13,146. Docomo (DCM) was down 1.3% to 151000. Sony (SNE) was up 3.5% to 4190.

The Hang Seng rose .2% to 23,952. China Netcom (CN) rose 3% to 22.4. China Petroleum (SNP) rose 1.2% to 6.95.

The Shanghai Compiste fell 1.7% to 3,292.

Data from Reuters.

Douglas A. McIntrye

Posted on: April 16, 2008 – 2:21 am in International Markets, , , ,

Asia Markets 4/11/2008 (TM)(CN)(PTR)

Markets in Asia were mostly higher.

The Nikkei rose 2.9% to 13,324. Mazda was up 8.9% to 367. Toyota (TM) was up 2.5% to 4950.

The Hang Seng rose 1.6% to 24,580. China Netcom (CN) was up 3.6% to 22.9. PetroChina (PTR) was up 1.8% to 10.26.

The Shanghai Composite rose .6% to 3,493.

Data from Reuters

Douglas A. McIntyre

Posted on: April 11, 2008 – 2:25 am in International Markets, , ,

Asia Markets 4/1/2008 (SNE)(CN)(SNP)

Markets in Asia were mixed

The Nikkei rose 1% to 12,656. Sony (SNE) roe 2.3% to 4060. Toshiba rose 3.2% to687.

The Hang Seng was up .1% to 22,878. China Netcom (CN) rose 1.1% to 22.65. China Petroleum (SNP) moved up 1.1% to 6.73.

The Shanghai Composite fell 4.1% to 3,329.

Data from Reuters

Douglas A, McIntyre

Posted on: April 1, 2008 – 2:28 am in International Markets, , ,

Asia Markets 3/36/2008 (NTT)(CN)(PTR)(TM)

Markets in Asia were mixed.

The Nikkei fell .3% to 12,707. NTT (NTT) rose 2.8% to 444000. Toyota (TM) fell 1.5% to 5260.

The Hang Seng rose .9% to 22,674. China Netcom (CN) fell 2.3% to 21.3. PetroChina (PTR) dropped 1.3% to 9.7%.

The Shanghai Composite dropped a fraction to 3,607.

Data from Reuters

Douglas A. McIntyre

Posted on: March 26, 2008 – 2:25 am in International Markets, , , ,

Top 10 Pre-Market Analyst Calls (CN, CHU, DISH, FLR, IPCM, MDR, MFA, PLD, SKS, WRE)

These are not the only calls impacting stocks, but these are the top ten individual calls that 247WallSt.com is focusing on:

  • China Netcom (NYSE: CN) downgraded to Neutral at Credit Suisse.
  • China Unicom (NYSE: CHU) raised to Outperform at Credit Suisse.
  • DISH Network (NASDAQ: DISH) raised to Neutral at Credit Suisse.
  • Fluor (NYSE: FLR) raised to Buy at Citigroup.
  • IPC The Hospitalist (NASDAQ: IPCM) started as Buy at Jefferies.
  • McDermott (NYSE: MDR) raised to Buy at Citigroup.
  • MFA Mortgage (NYSE: MFA) downgraded to Market Perform at KBW.
  • ProLogis (NYSE: PLD) raised to Top Pick at RBC Capital Markets.
  • Saks (NYSE: SKS) downgraded to Neutral at Banc of America.
  • Washington REIT (NYSE: WRE) started as Outperform at RBC Capital.

Jon C. Ogg
March 6, 2008

Posted on: March 6, 2008 – 7:47 am in Analyst Calls, , , , , , , , , ,

Asia Markets 3/5/2008

Most markets in Asia were down slightly.

The Nikkei dropped .2% to 12,972. KDDI was up 1.8% to 631000. Mazda was up 2.2% to410.

The Hang Seng dropped .1% to 23,095. China Life (LFC) dropped 1.2% to 28.65. China Netcom (CN) rose 6.2% to 24.05.

Tha Shanghai Composite fell 1% to 4,293.

Data from Reuters

Douglas A. McIntyre

Posted on: March 5, 2008 – 3:21 am in International Markets, ,

Asia Markets 3/3/2008 Sharp Drop (TM)(CN)(PTR)

Most markets in Asia fell sharply.

The Nikkei fell 4.5% to 12,992. Canon was down 5.2% to 4570. Honda (HMC) was down 5.8% to 3070. Toyota (TM) was down 3.3% to 5560.

The Hang Seng dropped 3.1% to 23,585. China Netcom (CN) fell 23.5. PetroChina (PTR) fell 4.9% to 11.26.

The Shanghai Composite moved up 2.1% to 4,438.

Data from Reuters

Douglas A. McIntyre

Posted on: March 3, 2008 – 3:26 am in International Markets, , , ,

Asia Markets 2/26/2008 (NTT)(C)(HBC)

Markets in Asia were mixed.

The Nikkei fell .7% to 13,825. NTT (NTT) fell 1.1% to 470000. Nissan rose 1.9% to 982.

The Hang Seng rose 19% to 25,715. China Netcom (CN) rose 5.8% to 25.5. HSBC (HBC) rose 2.8% to 119.7.

The Shanghai Composite was up 1.21% to 4,238.

Data from Reuters

Douglas A. McIntyre

Posted on: February 26, 2008 – 3:38 am in International Markets, , ,

Media Digest 2/22/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

According to Reuters, Micorosft (MSFT) will open up some of its software code to rivals.

Reuters reports that BP (BP) will try to get billions of more barrels out of Prudhoe Bay.

Reuters writes that the failure of the 3Com (COMS) deal could cut the list of Chinese investors who might buy into Motorola’s (MOT) handset busines..

Reuters reports that LG believes that it can get substantial market share from Motorola’s handset business.

Reuters reports that investors in The New York Times Company (NYT) are preparing for a proxy fight.

Reuters writes that Starbucks (SBUX) will cut its US staff by 600 people.

The Wall Street Journal reports that the credit crunch is spreading to investments linked to the debt of major companies.

The Wall Street Journal writes that Nasdaq is working on a plan to list "blank check" special acquisition companies.

The Wall Street Journal writes that China may consolidate some of its largest telecom companies including China Unicom (CHU) and China Netcom (CN).

The Wall Street Journal writes that Motorola cannot find a buyer for its handset unit, driving down the value of the company’s stock.

The New York Times writes that the government is looking at a plan to rescue 8.8 million homeowners who have lost much of the equity in their homes.

The New York Times writes that Toyota (TM) is trying to give more decision-making power to local managers around the world.

The FT writes that UBS (UBS) is looking for a new chairman.

Bloomberg reports that talks between the pilots of Northwest (NWA) and Delta (DAL) are still holding up a merger.

Douglas A. McIntyre

Read More »

Posted on: February 22, 2008 – 4:06 am in Press Digest, , , , , , , , , , , ,

Asia Markets 2/14/2008 Big Rally (SNE)(SNP)

Markets In Asia were up sharply with the Nikkei making is largest move in five years.

The Nikkei rose 4.3% to 13,626. Sony (SNE) rose 4% to 4820. Toppan Printing rose 10.1% to 1111. Toshiba rose 7.1% to 782.

The Hang Seng rose 3.7% to 24,022. China Netcom (CN) rose 8.2% to 25. China Petroleum (SNP) rose 5.1% to 9.09.

The Shanghai Composite was up 1.4% to 4,552.

Data from Reuters.

Douglas A. McIntyre

Posted on: February 14, 2008 – 3:49 am in International Markets, , ,

Asia Markets 2/12/2008 (NTT)(DCM)(CHL)

Markets in Asia were mostly higher.

The Nikkei rose a fraction to 13,02. NEC rose 1.8% to 408. NTT (NTT) rose 2.6% to 512000. Docomo (DCM) rose 3.1% to 167000.

The Hang Seng rose 1.4% to 22,922. Chnia Netcom (CN) rose 3% to 22.55. China Mobile (CHL) rose 1.8% to 114.7.

Shanghai was closed for a holiday.

Data from Reuters

Douglas A. McIntyre

Posted on: February 12, 2008 – 3:48 am in International Markets, , , ,

Asia Markets 2/5/2008 (HMC)(CN)

Markets in Asia were mixed.

The Nikkei fell .8% to 13,746. Honda (HMC) fell 3.5% ot 3310. NEC fell 2.7% to 425.

The Hang Seng fell 9% to 24,809. China Netcom (CN) fell 3.4% to 24.55. New World Development fell 5.3% to 22.15.

The Shanghai Composite dropped 1.6% to 4,600.

Data from Reuters.

Douglas A. McIntyre

Posted on: February 5, 2008 – 3:51 am in International Markets, ,