Market Musings 21/03/2011
This was a day in which the main market focus was on a good news story – AT&T’s $39bn cash-and-shares bid for T-Mobile USA. A number of things caught my eye about that deal, the main ones being the whopping $1,147 per subscriber the bid values T-Mobile USA at and also the potential for regulatory issues to delay the transaction. Unsurprisingly, news of the deal saw European telcos rise today, but with Deutsche Telekom reportedly planning to use the proceeds to pay down debt as opposed to acquiring telcos in this part of the world it’s unlikely to spur further mobile phone consolidation in Europe.
I was interested to see that 2 Irish broadsheets – the Sunday Independent and Sunday Business Post – had published articles on Irish Continental Group over the weekend which mentioned the potential for another attempt at an MBO. I wonder if this press coverage is a mere coincidence or if it’s down to someone flying a kite. One to keep an eye on (Disclaimer: I am a shareholder in ICG).
The oil sector was quite busy today. Given the West is currently bombing Libya, I was interested to check out who the main oil producers are in that country – see here. How that conflict plays out may have consequences for some of those names. Elsewhere, some good news on the drilling front in both the North Sea and the Falkland Islands saw a raft of UK listed oil stocks in focus.
On the commodities front, silver is something that’s caught my eye of late. And I’m not alone. I was also interested to see earlier today that silver has gained 17% in the year to date while gold is up by less than 1%.
In the US Citigroup announced a share consolidation and the resumption of dividends, while housing data disappointed.
And finally, some humour. Nike prepared this ad before last weekend’s game in Dublin, clearly anticipating a different outcome!