Post by
the_ocotillo on Aug 27, 2013 1:06pm
Consolidation discussion.......
In the last two earnings "presentations" I have noticed that Axia has mentioned (in regards to the French market) that the "Market developed to the point where consolidation discussion heating up" and that "Covage positioned as a pure play fibre focused operator with a strong management team and sound financials". I haven't been able to figure out if Axia is talking about being an buyer or seller of assets. If they are a seller, I think the Covage stake is easily worth $100m, and that's a low number. If they aren't a seller, with current market cap around $100m the market still doesn't think Axia's assets are worth what Axia has paid to develop them. (Yea, broadband fibre networks, who needs them?!?) If they are a buyer, where does the funding come from, their partner?