Green light for two major US deals

The international ICT world was dominated last week by the FCC clearance of two multibillion-dollar US telecommunications acquisitions and Telefonica`s buy-out of O2.

Locally, Vodafone`s offer to buy VenFin`s share in Vodacom stole the local headlines, although this weekend`s breaking news about FrontRange will figure significantly in the local media this week.

Microsoft bought Swiss VOIP software developer, media-streams.com AG, and FolderShare, a maker of file management software.

Paul Booth, MD, Global Research Partners

* The acquisition of UK`s mobile operator, O2 (ex-BT Cellnet before it was spun-off), by Spain`s Telefonica SA for $31.3 billion. If the deal is completed, it will make Telefonica the second largest listed international telecommunications group by market capitalisation, behind Vodafone, and give it a major foothold in Germany and the UK.

* The FCC has cleared both the SBC and Verizon multibillion-dollar telecommunications deals with AT&T and MCI respectively.

* Vodafone bid R21 billion for VenFin. The deal gives Vodafone a 50% stake in Vodacom with the other assets sold back for R5 billion and hived-off to a non-listed entity. The remaining assets include a number of technology investments including Dimension Data, FrontRange, Idion and Tracker as well as investments in Alexander Forbes and e-tv.

* The buy-out of FrontRange by a private equity group for about $200 million. This move was not unexpected since most of the company`s operations are US-based. However, it seems the JSE will lose yet another technology stock and local users might feel a little nervous about the company and its product future now being in the control of foreign hands.

* Good interim numbers from Jasco with both revenue and income up.

* Satisfactory Q1 numbers from Net 1 UEPS with revenue up 6% and income up about 30%.

* A full-year loss from Sentech.

* A positive trading update from UCS.

* The appointment of Edwin Thomson, a senior executive at UUNet SA, as chairman of the Communications Users Association of SA.

* The Convergence Bill, now called the Electronic Communications Bill, should be passed by Parliament by year-end, according to the communications minister.

* The winners of the 2005 African ICT Achievers Awards include Thoko Mokgosi-Mwantembe, CEO of HP South Africa, as the Overall Top ICT Individual in Africa; Accenture as the Top ICT Organisation in Africa; and Robert Sussman as Top ICT Private Sector CIO in Africa.

* According to BMI-TechKnowledge, fixed and mobile telecommunications investment for the African continent will reach $65 billion for the period 2000-2009 with the mobile side taking the larger share.

* Zambia`s ICT policy document is expected this month after two years of deliberations.

* Celtel Tanzania will lay-off over 1 200 workers.

* The appointment of IT Wise as the sub-Saharan distributor for Neoware and SecureData as the African distributor for Precise Biometrics.

* The resignation of Gbenga Adebayo, CEO of VGC Communications, following its sell-out to Global Fleet Group.

* TeleCity and Redbus Interhouse merged in a deal that brings together two major carrier-independent co-location and managed services providers.

* Microsoft bought Swiss VOIP software developer, media-streams.com AG, and FolderShare, a maker of file management software.

* Qwest Communications International settled its shareholder lawsuits for $400 million.

* A joint venture was established between IT services vendor TietoEnator and Saab Group AB, which is to be known as TietoSaab Systems Oy.

* EDS sold off its high-end consulting business, AT Kearney, to its firm`s partners.

* Telenor ASA purchased Vodacom`s Swedish operation.

* YDI Wireless changed its name to Terabeam.

* The appointments of Sir Dominic Cadbury as chairman of Misys, Pentti Heikkinen as president and CEO of TietoEnator, Ronald Hovsepian as president and COO of Novell, Ruben Marcus as CEO of TTI Telecom, Samuel Westover as president and CEO of Sonic Innovations, Mikel Williams as president and CEO of DDi, and Anthony Zingale as CEO of Mercury Interactive.

* The resignations of Amnon Landan as CEO of Mercury Interactive, Matti Lehti as president and CEO of TietoEnator (stays on as chairman), Meir Lipshes as CEO of TTI Telecom (stays on as chairman), Bruce McMaster as president and CEO of DDi, and Michael Wolf as president and COO of MTV Networks.

* The retirement of Donald Ciffone as chairman of Exar.

* Analyst upgrades for Advanced Digital Information, ATI Technologies, Black Box, Brocade Communications, CheckFree, Entercom Communications, Infineon Technologies AG, LTX, Navteq, QLogic, Qualcomm, SPSS, SPX, Stellent, TDS A/S and Teradyne.

* Analyst downgrades for Anteon, Apple, Avnet, Covad Communications, CSC, Dell, FairPoint Communications, HP, Intersections, Mercury Interactive, SRA International, Sun Microsystems, Symantec, Telefonica SA, Telewest Global and Third Wave Technologies.

* Positive results announcements from ADIC and TDC A/S.

* Negative result warnings from Acer, Agile Software, Brightpoint, Dell, Interlink Electronics, Intersections, McData and Take-Two Interactive Software.

* Stock repurchase announcements from CTS, International Rectifier, Maxim Integrated Products, Monolithic Systems Technology, Solectron, Time Warner and Track Data.

* Job loss announcements from Deutsche Telekom, ING Groep NV (IT operations), Macrovision and Novell.

* Private funding obtained for Austin Logistics, a predictive analysis software company; CloudShield Technologies, a packet inspection software vendor; and TI Technology, a storage solutions and services company.

* A private placing of stock by Medicsight and Patient Infosystems.

* A share split announcement from Mobile Wireless Security (reverse 1:1000).

* IPO filings from Spansion, the flash memory unit of AMD and Vonage Holdings, an Internet-based phone services provider.

* Mediocre IPOs from CBeyond Communications, an Internet telephony company, and Website Pros, a Web services firm.

* Interlink Electronics restated its financials from 2003.

* Envesta Telecom`s shares were suspended on London`s AIM.

* The potential buyer for CSC. Lockheed Martin together with three private equity firms and Carlyle, another private equity company, are two of the potential bidders.

* The buy-out of IPayment, a payment processing company, by its CEO, Gregory Daily.

* Worldwide PDA shipments rose by 21% in Q3 2005 to 3.45 million units, says Gartner.

* JSE All share index: Up 4% (highest ever weekend close)

* Nasdaq: Up 3.8%

* Top SA share movements: Beget (-25%), Idion (+40.9%), ISA (+25%), Labat Africa (+25%), MTN (+19.2%), Sekunjalo (-10.7%), Telkom SA (+11.9%), VenFin (+32%), Vesta (+20%) and Zaptronix (-20%).

* Top international share movements: AT Communications (+27.7%), Autonomy (+27.3%), Elcom International (+32.4%), FiberMark (-55%), Gresham Computing (+29.4%), Orckit Communications (+35.8%), SGI (-32.4%), Tadpole Technologies (+34.7%), Ultimate Electronics (+183.3%) and Verity (+31.7%).

The latest activities re VenFin and Vodafone come soon after the recent publication of VenFin`s excellent annual results. The group already has stakes in Dimension Data, FrontRange, Idion and Vodacom as well as smaller technology companies such as Cueincident, Fraxion and Tracker.

However, it has sold off its investments in Inala, iTouch and Psitek, and has merged its major problem child, Intervid, with CommsCo. Now with the new FrontRange situation, the portfolio is obviously going to be changed again, and speculation is already rife as to the fate of these investments.