Spanish network giant Telefonica revealed just how much financial trouble it may be in after it was forced to sell half of its shares in China Unicom back to China’s number two telco. Telefonica will remain a major shareholder in the Chinese company with a 5.01 per cent stake, but is set to cash in on 4.56 per cent to the tune …
'managing their assets proactively' I love that phrase which actually means,
We are fu***ed, oh sh*t do something anything but do it quick!'
They went on a spending spree in Europe, LatAm and China with a combination of abusive tariffs in Spain and easy credit. Now as the crisis hits Spain people are finally "proactively" looking for cheaper alternatives, the easy credit's dried up, and nationalising's becoming de rigeur in LatAm they're left without a paddle.
Telefonica are a Phorm partner... Phorm just announced an investment deal in China.
"As the debt crisis continues in Europe, the state-run Chinese operators with their deep pockets and strong domestic businesses are now more likely to invest in partnerships with, or even acquisitions of, their foreign counterparts."
Why should Chinese companies be allowed to buy more than 50% of any EU company? EU companies aren't allowed to have more than 50% of any Chinese company. I'm sort of pro a free market, but I'm definitely pro doing to one state what they do to us. I guess I'm pro quid pro quo, as it were.