Sonaecom COO says PT Multimedia is expensive at current trading multiples |
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Tue, 30 Oct 2007 13:02
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LISBON (Thomson Financial) - A tie up between Sonaecom SGPS and peer PT Multimedia SGPS could be positive, given the two companies' complementary networks, but with PTM currently trading at a multiple of around 40 times EBITDA, its share price cannot be justified, Sonaecom's Chief Operating Officer Luis Reis said.Speaking during a conference call on Sonaecom's third-quarter results this morning, Reis said the possibility of combining PTM's cable network and Sonaecom's wireline and mobile networks 'makes sense'.Sonaecom is waiting to see the consequences of PTM's spin-off from Portugal Telecom SGPS before reaching a decision on the matter, Reis added.PT is spinning off its 58 pct stake in PTM, with each PT shareholder being allotted 0.1760 PTM shares for every PT share they held.PT shares started trading ex-rights for PTM shares today, while the record date for PT shareholders to receive PTM shares is on November 1.Regarding additional competition Sonaecom may face after the spin-off, Reis said that he does not believe a true separation between PT and PTM, and therefore more competition, will occur until the two companies cease to have the same shareholders.Reis noted that Sonaecom is currently focusing on reacting to greater competition from Vodafone Portugal, which has launched an aggressive drive to attract fixed-line broadband customers with 'the same ADSL technology that Sonaecom uses, rather that the cable technology used by PTM.'chico.laxmidas@thomson.comscl/lhtCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Lisbon shares sharply higher midday boosted by Sonae cos, BCP; PTM underperforms 