Selling Toronto Hydro Telecom
January 28, 2008Now that Toronto Hydro’s Board has asked Toronto Hydro to look for a suitor to purchase The Telecom… What Next? What do you think? Where should politics, business and common sense start and finish? Is this whole announcement “Smoke and Mirrors” to appease the City. Will it actually sell at the estimated price of 125million?
links of Interest:
http://www.marketwire.com/mw/release.do?id=813041
http://www.cnw.ca/fr/releases/archive/January2008/24/c3973.html
Estimated price? interesting that for the longest time no one could get access to the unregulated business’ financials. How would the analysts get these figures?
Something does not smell right on this process?? common sense would dictate that if this unit is generating money, then why in the hell sell it? for a one time gain that would otherwise line councils pockets….or more appropriately….office expenses?? smart business would have it continue generating money for the city directly and not through the hydro.
My two cents worth, hope it sparks interest or further investigation.
JL
I see this situation being very interesting. I am not sure if the Telco is even making a profit. Even if they are is it at the expense of the regulated utility. Somehow the Utility (which we pay them regulated returns to) has provided the Telco its fibre assets. It is also providing the Telco space on its poles and most likely other services. Have these and are these services and infrustructure being charged for.
As for the worth of the Telco…I assume it is in the fibre (maybe customer base too). The Wifi technology they are using is old and within a year or 2 will be extinct. The CRTC has already auctioned off WIMAX frequencies and will be auctioning off other fequencies in May 08 that can carry mobile and internet long distances.
Maybe it is best to sell now before the company is worth nothing at all. Comments?
Recent news of the recommendation to sell Toronto Hydro will definitely stir quite a few pots. The report did say that the alternative would be to better manage the organization. I would agree with hat as a solution to both the hydro and its telecom arm. Maybe it could be as easy as cleaning the top and putting some true business oriented individuals n charge of both entities. Why get boys to play the men (or women) when you could actually hire real Men (or women)??
I’m not to familiar with the brass in these outfits, (besides their names from the web sites) anyone shed true light on the characters?
Justine