Telecom equipment maker Alcatel-Lucent said on Tuesday it would cut 10,000 jobs worldwide, calling it the last chance to turn the company around from heavy losses.
It was the latest step in a plan to focus on high-growth areas ranging from 4G mobile to high-speed broadband, and to lower fixed costs by more than 15 percent, saving a total of 1 billion euros ($1.36 billion).
The product of a 2006 Franco-U.S. merger aimed at creating a global giant, Alcatel-Lucent (Paris, France) told a European works council meeting it intends to axe nearly one in seven of its employees.
US cable company Time Warner Cable has agreed a $600 million takeover of DukeNet Communications, which operates a fiber-optic network across various Southeastern states.
DukeNet (Charlotte, NC, USA) is currently 50% owned by Duke Energy (Charlotte, NC, USA), the country’s largest electric power holding company, with the other 50% held by investment firm Alinda Capital (Greenwich, CT, USA).
The companies expect the transaction to close in the first quarter of 2014, subject to normal regulatory approvals.
US operator AT&T is responding to Google’s entry into the high-speed broadband market by promising to launch its own ultra-fast offer in Austin, Texas – where the internet giant plans to switch on a 1Gbps service in mid-2014.
The operator this week said it had begun work on the deployment of a network in Austin that would match Google’s (Mountain View, CA, USA) on connection speeds when finally developed.
European Union (EU) authorities have approved Vodafone’s €7.7 billion ($10.4 billion) takeover of Kabel Deutschland, clearing the way for a deal aimed at creating a player that can stand up to incumbent Deutsche Telekom in the market for so-called multi-play offerings.
“The Commission’s investigation confirmed that the activities of the merging parties were mainly complementary,” said the European Commission in a statement.
Three hedge funds who tendered shares enabling Vodafone to successfully bid for Germany's largest cable firm plan to sue for a better price for their outstanding holdings, three financial sources with knowledge of the matter said on Friday.
Vodafone (Newbury UK), which wants Kabel Deutschland (Unterfoehring, Germany) in order to offer more television and fixed-line services in its largest European market, said late on Thursday it had secured more than 75 percent of shares in the company, a condition for its 7.7 billion euro ($10 billion), 87 euro-per-share, offer.
Vodafone urged Kabel Deutschland shareholders to accept its 7.7 billion euro ($10.1 billion) offer, warning the bid would lapse if less than three quarters of them agree to sell Germany's largest cable operator by Wednesday.
Earlier on Monday the Financial Times said the British mobile network operator may fail to reach the 75 percent acceptance threshold, citing anonymous shareholders.
Vodafone may fail to reach the 75 percent threshold of acceptances from shareholders needed to clinch Germany's largest cable operator Kabel Deutschland, the Financial Times said on Monday.
"Some of Kabel Deutschland's [Unterfoehring, Germany] shareholders believe that the amount of tenders offered will fall well short of this goal," the paper said, citing anonymous shareholders.
Vodafone (Newbury, UK) agreed a 7.7 billion euro ($10.13 billion) offer for Kabel Deutschland in June, a near 40 percent premium to Kabel's share price before its interest first emerged.
Turkish operator Turkcell has reported impressive gains in revenue and earnings for the three months ending June on the back of strong demand for mobile broadband services.
The company saw revenues increase by 11%, to TRY2.86 billion ($1.43 billion), compared with the same period of 2012, while earnings before interest, tax, depreciation and amortization rose by 12%, to TRY869 million, over the same period.
Austrian telecoms incumbent Telekom Austria has been linked with a €1 billion ($1.3 billion) bid for cable company Serbia Broadband in a report from Bloomberg.
Citing sources familiar with the proceedings, Bloomberg says that Telekom Austria (Vienna, Austria) has re-entered bidding for the Serbian company, after dropping off a list of companies examining Serbia Broadband’s (Belgrade, Serbia) books, with other interested parties said to include Providence Equity Partners, Cinven Advisers and Altice Finco.
Telekom Austria and Dutch group KPN, the European rivals in which Mexican tycoon Carlos Slim has invested, have joined forces to offer internet-based data services to wholesale and large business customers, they said on Tuesday.
The two companies are combining their infrastructure to create a "backbone" optic fiber network across 35 countries whereby Telekom Austria (Vienna, Austria) can use KPN's (The Hague, Netherlands) network for its customers in western Europe and KPN can use Telekom Austria's network in central and eastern Europe.