Equant NV has unusual game plan; crucial to unorthodox path for future phone carrier is initial public offering

Article Abstract:

Equant is planning an initial public offering to prepare for continuing growth of its unorthodox telecommunications services. The Amsterdam-based company, founded in 1995, is expected to raise approximately $500 million from the offering. Plans call for Equant to list 15.7 million shares in Europe and 10.4 million shares in North America at between $18.50 and $23 a share on the Paris Bourse and New York Stock Exchange. Equant connects large corporations throughout more than 2,000 cities and 200 countries by jointly owning and operating the SITA global network, which allows airlines to make reservations and follow baggage. The company's performance has moved up its original IPO plans for 1999, according to Duncan Lewis, chief development officer and managing director. He added that Equant expects its annual revenue to jump by 32% from 1997's $529 million to $700 million in 1998. Equant could face tough competition from rivals such as Global One and Unisource, which are lowering their costs.

Securities, Equant N.V., Initial public offerings, Company public offering

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Bell Atlantic and union seek quick end to strike

Article Abstract:

Bell Atlantic executives met with the Communications Workers of America union on Aug 9, 1998, in an effort to quickly resolve the strike of approximately 73,000 company employees spanning Virginia to Maine. Negotiations on a three-year contract broke down amid disputes on nonunion hiring practices and job security, and picket lines formed in cities including New York, according to the Associated Press. Bell Atlantic said it proposed to outsource a small percentage of its work force's formerly permanent jobs to temporary, nonunion contract workers. Union officials accused the company of undermining its members's job security through the transfer of work to nonunion employees hired by Bell Atlantic subsidiaries. Bell Atlantic, which merged with Nynex earlier in 1998, currently serves 27 million customers in 13 states and Washington, D.C.

Human resource management, Labor relations, Bell Atlantic Corp., BEL, Company personnel management, Communications Workers of America

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BT, in Asian expansion, to buy stake in Binariang

Article Abstract:

In a bid to move into Asian markets, British Telecommunications PLC announced it would acquire a 33% stake in the Malaysian telecommunications group Binariang Sdn. Bhd. for about $413 million. The British telecom giant is able to exploit the devastating financial crisis in Asia by buying at a time when costs are at an all-time low in the region and countries have become more desperate for foreign capital. For example, the crisis has led to the Malaysian government's decision to raise the percentage threshold at which foreign investors may buy into Malaysian companies from 49% to 61%. BT has plans to position itself in the fast-growing field advanced mobile telecommunications in Asia.

Comment:

British Telecom is to acquire a 33% stake in Binariang for about $413 million

Asset sales & divestitures, Acquisitions & mergers, Malaysia, British Telecommunications PLC, Article, Binariang Sdn Bhd

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