Hopefully it will start going up this year but that mainly depends on what happens next.
I think for large investors and the markets they want the new CEO to be someone outside of the Vodafone group as anyone currently at Vodafone would just mean more of the same as before in which case there was no point in getting rid of Nick Read.
Personally I do agree the new CEO needs to be someone from outside Vodafone, as a new CEO would want to look at everything they currently do to make sure its good for the group but hopefully will bring in new fresh ideas that i feel is needed.
And I do agree with some analysts and reports that Vodafone has several non core assets it could sell to reduce the huge debt pile and yes there would be companies that would want to snap up the non core assets (there always are with telecoms assets) but I believe Vodafone should only sell them when they get a good price as a quick fire sale as some are suggesting would not be a good idea as we would get no where near the true value companies would normally pay.
Vodafone has previously and in there latest report has reiterated that they intend to keep the dividend payments as a minimum at there current 9 cents per share which would be great for shareholders although I am sceptical they will be able to do that for too long as I think some will want dividends reduced to clear more debt but at the moment the dividend return is great and will be happy with it for as long as it lasts.
I suspect you correct as a few people are buying big stakes and the markets are expecting a take over offer or asset sales but I personally do not think there will be a takeover offer anytime soon as I believe anyone who might be thinking of a takeover wouldn’t want to do anything until they know if the three merger happens if that does happen (would still have to have both OFCOM & CMA to approve it first) and we all know EE & o2 will put in objections to it.
Once thats over I feel a breakup of some assets or even a takeover offer might be possible but Liberty global wouldn’t be able to do a full takeover if the three & Vodafone merger happens as Liberty has a joint venture with o2.
Three is not a listed company its owned by a Chinese company CK Hutchinson.
If the deal goes through then Vodafone will be the dominant partner, although there are a few analysts that believe the deal wont go through as its currently structured as it would give Three a bigger part of the UK telecoms infrastructure and under the new rules the government could block the deal, or they could demand that Three holds a much smaller percentage (some believe they may not be able to hold more than 25%)which means Vodafone would have to add money to the deal so its very much up in the air at the moment.
Any deal would have to be approved by the following hence the huge doubts
Business Secretary (Kemi Badenoch)
Good Morning all looks like the markets weren’t happy with the financial results today.
I suppose I should see it as an opportunity to buy more cheaper shares. Just keep reducing net debt and all will be well.
I believe its part of business historically Vodafone don’t do much layoff’s compared to others of the same size and its simple less customers you have the less staff you need to provide the service for the customers.
There are a few reasons for the dip most will be because of flat earnings etc… and Vodafone has now said that there is no certainty that the merger with Three UK will progress.
But there are positives, they pay a good dividend, they are reducing staff numbers by around 12% of total workforce which will be worth north of 1/4 billion in savings, net debt has been reduced by a good amount.
Dividend is never guaranteed but the current dividend rate was supported by the current CEO when she was CFO so I guess she will try and keep it at that rate but obviously not a guarantee.
I am just seeing the low share price as a good time to top up personally