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Writing in the Daily Telegraph today (12 Nov), the newspaper's Business Editor, James Quinn pontificates on "the potential for a takeover of TalkTalk from one of the sector�s biggest beasts has to be high":

In reference to www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms...:

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From a brand perspective, one has to wonder whether the TalkTalk brand can survive as it is.
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Given the consolidation that has already taken and is taking place in the telecoms sector, the potential for a takeover of TalkTalk now from one of the sector�s biggest beasts has to be high.

Clearly such a deal could not happen without the backing of Sir Charles [Dunstone] and fellow Carphone founder David Ross, who owns a 12pc stake in TalkTalk.

But, despite Wednesday�s 10.3pc price rise, the shares are 40pc below where they were in June, and a well-timed, well-priced bid might be just the tonic � given an acquirer would undoubtedly stamp its brand on the service and have deeper pockets to be able to spend more on internet security.

TalkTalk�s short-term future may be secure, but after the past three weeks, it�s long-term future as a challenger to the status quo may be in doubt.

The coup at TalkTalk may already be over. An up-to-date list of shareholdings is not readily available. And after the brouhaha of recent weeks, we don't really know who owns what now. However, what follows is a combination of details from 2015 filings and subsequent market updates:

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1 23 45 67 89 10	-       Shares  %  Charles William Dunstone  30.8% Capital Research          16.0%David P. J. Ross          12.2% Invesco Asset Management   6.8%Alken Asset Management     4.9% Jupiter Asset Management   4.6%Credit Suisse              3.9% Group ESOT                 2.8%

This shows us that a takeover would not, in fact, require the blessings of both Dunstone and Ross. Their combined shareholdings only amount to 43% of TalkTalk stock. The majority of stock is actually in others' hands; mostly institutional funds.

There is also the small matter of £600m of loans which TalkTalk has outstanding. In the grand pecking order, bondholders and other creditors always take precedence over equity owners. Their demands preferential at boardroom level. Those loans will have been issued to the company with that proviso.

So if anyone fires the shots it will be the banksters and bondholders; they will set the demand that TalkTalk enters into takeover talks.

From the 2015 Annual Report (pages 14 and 82)

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1 23 45 67 8	-- Funding --  At 31 March 2015, the Group�s sources of finance were:  �109m US Private Placement Notes (corporate bonds); maturing 2021-2026 �340m drawn from �560m revolving credit facility; maturing July 2019�100m term loan; maturing July 2019 �50m bilateral agreement; maturing July 2019

Edited by deleted (Fri 13-Nov-15 05:57:59)

Was this an ironic post or a series of copy/pastes or your personal opinion?

In reply to a post by MrSaffron:

Was this an ironic post or a series of copy/pastes or your personal opinion?

No irony from these quarters! Only straight-shootin' personal opinion.

The words in the Telegraph echo many other voices calling for consolidation (and convergence) in the telecoms sector. With TalkTalk in particular finding itself in the cross-hairs.

Way back in March, the media was mooting the merger or takeover of TalkTalk by Vodafone. Now TalkTalk's stock price is nearly 50% lower than it was in June --in part thanks to the "hacking" brouhaha (nudge nudge wink wink!) -- the cost of acquiring TalkTalk by one of the "big beasts" like Vodafone just got a whole lot cheaper. In fact those working towards takeover and convergence may already wield the balance of power at TalkTalk.

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Edited by deleted (Fri 13-Nov-15 16:37:34)

Well i have written to tt regarding keeping my details for longer than necessary a lot longer in my case some 7-8yrs since i was a customer of Tiscali , which i had migrated away from before talk talk arrived on the scene, So why they tt even had my details is a mystery, if they don't wipe my details from their systems i will take it further with the ICO

Vodafone has a market cap of £60bn, TalkTalk on a good day £4bn.

If Vodafone wanted to buy them then they would, without having to resort to illegal tactics.

I hardly think Vodafone using the media to manipulate the stock price is plausible. Time to take off the tinfoil hat...

May I suggest you watch an episode or two of Minder; starring the late George Cole (RPI) as Arthur Daley, the incorrigible used car dealer. You may learn a trick or two. (Or maybe not!)

The dodgy used car dealer is a reasonable simile for a deal-broker in the City of London.

The first concept to grasp is that a buyer never pays what the seller asks. First objective is to vilify the asset in the eyes of its owner, convince him that it's utterly worthless, before moving in for the kill.

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Edited by deleted (Sat 14-Nov-15 01:47:11)

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On 11 Nov, TalkTalk announced its lacklustre Half Yearly results. The City seemed disinterested; pre-occupied by the TalkTalk "hacking" brouhaha; and what the board would be saying about it at the Press Conference.

Quietly confirmed at the same time, without comment or explanation, was the return of Roger Taylor to TalkTalk's board.

In July 2012, Taylor left TalkTalk. He had been Deputy Chairman, and helped oversee TalkTalk's demerger in March 2010 from Carphone Warehouse.

After the split of the two companies; Taylor stayed on at Carphone Warehouse. As CEO forging a 50:50 MVNO project with Virgin Mobile France. Later, as Deputy Chairman, firstly entering into, and then profitably extracting the company from a doomed £1bn joint-venture with US electronics retailer Best Buy.

In May 2014, Carphone Warehouse announced it would be merging in a £3.8bn deal with Dixons, "creating a giant retail chain with combined sales of £11bn". Again, as CEO of Carphone Warehouse, Taylor was at the forefront, forging that mega merger, too.

Roger Taylor stayed on at the newly-merged company, named Dixons Carphone, becoming Deputy Chairman, where he remains in that position today.

In June 2014, Taylor was soon busy again in the Mergers & Acquisitions market - brokering another deal that saw Dixons Carphone sell its 50% stake in MVNO Virgin Mobile France for £265m to Numericable. A profitable but timely exit for Dixons Carphone from the increasingly competitive French cellular market.

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The point here -- and it may be something and nothing -- is that Roger Taylor, an old hand in the telecoms industry, has a proven track record of delivering Mergers & Acquisitions in the sector.

It may be that Taylor has been brought back to the TalkTalk fold for specifically that purpose; for his expertise in mergers; to oversee discussions on a possible takeover of TalkTalk by a rival telco; possibly a cellular operator; with the name of Vodafone being repeatedly cited.

As a takeover candidate, Vodafone is particularly well-placed. Ready positioned to combine fixed and wireless assets in pursuit of the industry buzzword of "network convergence".

In a deal sealed in April 2012, Vodafone already acquired the UK fixed-wire infrastructure of C&W for £1bn. TalkTalk's own infrastructure could generously complement that.

We may soon see 'what is brewing' at TalkTalk.. In the meantime, let's enjoy a bit of Minder!

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Edited by deleted (Sat 14-Nov-15 01:48:58)

So what you're implying is that this is all a ruse to aquire a company cheaply? Time to call Dr Shrink!

To be honest I am edging closer to labelling this as trolling

Your interest in TalkTalk has gone into obsession. What's going on with you?