It is true that this movement raises many questions

Chips are no longer the rating on the stock exchange. The increase of 18.5 caused by the assumption of a redemption in LBO of Freescale measure although the inefficiency of the market to enhance this type of companies, as no immediate synergy does the premium that he hopes to pay by investment funds. Yet, with a course on the rise before rumours of 130 since its introduction on the stock market two years ago, the Motorola semiconductor ex-division did not appear among the most forgotten. But to Freescale a price-earnings ratio by action of 16.5, lower than that of an Intel in crisis, Wall Street remained in withdrawal of its pace of growth and the sans-faute carried out since the making of autonomy. After the recent acquisition of the equivalent division of Philips, interest of funds for Freescale proves that they are more inhibited by also cyclical than the semiconductor sector, or by its traditions to retain cash capital instead of combining debts to its fluctuating risk-taking. More than the record amount of a possible LBO on Freescale, this is the new approach to a sector out of market dynamics that what generate attention. And information to succeed to boost price of STMicroelectronics as was the case yesterday, is that it really changes the perspective.

Optical effect

A great leap forward is sometimes make a big step backwards. By announcing that he would invest EUR 1 billion in six years in the optical fiber to deliver very high flow up to the Subscriber, Iliad especially worried investors. Five days after loudly hailed the good half-year results of the group, the market showed its perplexity in imposing an 11 decline in the home of Free. It is true that this movement raises many questions. If Iliad speaks 4 million networked clients, it does speak first subscribers existing ADSL in areas where it holds at least 15 of market share, be 660.000 only on its 1.9 million customers high throughput. So real investment by connection will be 1,500 euros per subscriber and not 250. A figure to match the cost of 1,000 euros per subscriber planned by France Telecom. As Free plans to charge the same subscription customers very high throughput of ADSL, can be questioned the profitability of the investment that Iliad has achieved in six years. Recognizing be with France Telecom the single operator to really win in the ADSL market share, the challenger would have to do in this new field to the firepower of the incumbent operator.

Divergence in Italian

To retry to believe, the shareholders of European telecoms operators have need of a radical aggiornamento and if Marco Tronchetti Provera, President of Telecom Italia, was the Prophet, why not The cascade of holdings which gives control of the ex-monopole is, rightly, criticism and suspicions. But, by implicating to the forefront of the equity holders and debts which are taken as a whole, it also for virtue to place it in the personal urgency to imagine the solutions to get out of its impasse. Moreover, the Italian group is not the most poorly loti: its course and its recovery in lower ratios are better defended than those of France Telecom and Deutsche Telekom. By questioning the fixed-mobile-Internet convergence model that he helped to install, the President of Telecom Italia may have in mind that, except Spanish Telefonica, doped with Latin America, the only two Europeans who still enrich their shareholders are KPN Dutch and British BT. They have certainly in common a small size which makes potential prey, but they have especially exposure much stronger than the others, almost total in BT, to fixed telephony. A divergence that prevent them to withstand the pressure of multiple competition nor to front a very vigilant regulator.