COMPANY NEWS IN BRIEF
COMPANY NEWS IN BRIEF

COMPANY NEWS IN BRIEF

Phillepus Uusiku
Vodafone and Iliad in talks

Telecom firms Vodafone and Iliad are in talks to strike a deal in Italy that would combine their respective businesses in a bid to end cut-throat competition in the euro zone's third-biggest economy, sources familiar with the matter told Reuters.

Discussions between the two companies are ongoing and both parties are actively studying ways to clinch a tie-up of their respective businesses in Italy, the sources said, speaking on condition of anonymity.

Iliad, which will make its wireline broadband debut in Italy on Jan. 25, is working with investment bank Lazard on its strategic plans in Italy, one of the sources said, cautioning that a deal was not certain.

If successful, a deal would create a telecoms powerhouse with a mobile market penetration of about 36% and combined revenues of nearly 6 billion euros (US$6.80 billion). Iliad and Vodafone declined to comment while Lazard was not immediately available for comment.

Iliad, led by billionaire founder Xavier Niel, has been reviewing options to further expand in Italy in recent months as it seeks to take advantage of deal fever in Italy's telecoms industry to accelerate consolidation and cease a price war that has been slashing its margins, the sources said. -Reuters

Shell officially changes name

Shell officially changed its name on Friday, ditching "Royal Dutch", which has been part of its identity since 1907, following plans to scrap its dual share structure and move its head office from the Netherlands to Britain.

"Shell announced the Board's decision to change its name to Shell plc on December 20, 2021. This change has now taken effect," Shell said in a filing.

The London and Amsterdam stock exchanges will reflect the name change on Jan. 25 while the New York Stock Exchange will follow on Jan. 31.

The change will not affect share ownership and the A shares and B shares will remain unchanged for the time being, Shell said. The shares are planned to be assimilated into a single line of ordinary shares on Jan. 29.

Shell announced in November it would scrap its dual share structure and move its head office to London from The Hague, pushed away by Dutch taxes and facing climate pressure in court as the energy giant shifts from oil and gas. -Reuters

Union faults BP’s proposals

The United Steelworkers union (USW) on Friday said proposals by energy giant BP Plc would undermine its 56-year-old national program for refinery and chemical plant worker contracts.

People in the USW familiar with the matter said BP has put forward proposals in local negotiations at its U.S. refineries to require waiting periods of up to 120 days between the expiration of a contract and the possible start of a strike.

“BP's position at local tables attacks the National Oil Bargaining Program,” the union said in a message to members and seen by Reuters. “Pipeline & refinery locals stand together to fight back!”

A BP spokesperson declined to discuss the details of proposals in contract negotiations.

“BP is negotiating in good faith with the United Steelworkers union to improve the competitiveness of our business and create a sustainable future for all,” said company spokesperson Cameron Nazminia. A union spokesperson was not immediately available to discuss the USW’s message. -Reuters

Lufthansa set to buy stake in ITA

Germany's Lufthansa is set to buy a 40% stake in state-owned Alitalia's successor ITA Airways and a deal could be unveiled next week, Italian daily Il Foglio reported on Saturday.

ITA Airways started flying on Oct. 15 with nearly 2 300 employees and a fleet less than half the size of that operated by Alitalia, the 75-year-old former national carrier which passed through a dizzying succession of restructurings and changes of ownership.

The newspaper did not give a price for any deal, but said the two companies were very close to agreeing over some key terms, such as the role of Rome's Fiumicino airport as a hub for direct flights to Africa and some routes to the Americas.

An ITA spokesperson said on Saturday that the airline's top management would present a strategic plan to the company's board on Jan. 31. A data room would be opened in the following days, he added, allowing a potential bidder or partner to have access to key financial documents to assess the value of the company.

The report comes after sources told Reuters on Jan. 12 that ITA was in contact with Lufthansa, British Airways and United States-based Delta Air Lines for an equity partnership, saying that formal talks could start by the end of March. -Reuters

Kohl's under fresh pressure

US department store Kohl's Corp may soon receive a second takeover offer as private equity firm Sycamore Partners prepares to make a bid only days after a consortium backed by activist investment firm Starboard Value proposed buying the company, three sources familiar with the matter said on Sunday.

Sycamore Partners has reached out to Kohl's about a potential offer that would value the company around US$9 billion, one source said. The firm is willing to pay at least US$65 a share in cash for the company, the source said.

The news comes two days after Acacia Research, which is backed by Starboard, offered to pay US$64 a share for Kohl's, confirming a Reuters report last week that Acacia had reached out to the company to express its interest in a takeover.

There are no guarantees that Sycamore Partners will make a bid or that a deal will be reached with either Sycamore or Acacia, the sources said. Bloomberg first reported Sycamore's interest on Sunday and the Wall Street Journal reported the Acacia bid on Friday.

Representatives for Sycamore, Acacia and Kohl's did not immediately respond to requests for comment. -Reuters

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Namibian Sun 2024-11-24

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