Dear Editor,
The discourse concerning Digicel's call for strict regulatory and fiduciary oversight of the CWC acquisition of Columbus International needs to go beyond the classic 'sour grapes' response being levelled at the Ireland-based firm from almost every corner of society.
Customers and detractors alike have been lambasting the once revered 'bigger, better network', especially via social media, in a manner that reminds me of the contempt many Jamaicans held for the stodgy Cable and Wireless monopoly in the pre-liberalisation era and shortly after.
CWC spent US$3 billion on the deal. Digicel has admitted it offered US$2 billion. Is it that Digicel's bid could not stand up to the scrutiny of the very regulators it is now asking to probe CWC's alleged extravagance?
Let's face it, underpayment for such a major asset would attract stringent regulatory scrutiny as much as overpayment. One billion US dollars could easily swing the pendulum in either direction. It is not the place of a spurned bidder, as Digicel appears to be in this case, to pronounce on such a matter.
Basic market theory dictates that the ultimate price of an asset is generally determined by what buyers are willing to pay for it. Interested buyers see opportunity and they jump at it. Whoever jumps the highest and times the perfect catch wins! Simple.
The effect that this rather curiously timed announcement from Digicel could have on the Financial Times Stock Exchange (FTSE) in London, where CWC trades, must not be understated. Announcements of this sort can cause jitters among investors and must, therefore, not be taken lightly.
Indeed, even here at home, where over 20,000 Jamaicans own shares in CWC's subsidiary, LIME, shockwaves from the Digicel announcement could also hurt local investors. Perhaps the major calming factor for local and overseas investors and the general public would be that the source of this information was neither an acclaimed global asset management firm, nor did it originate from a leading securities and brokerage house with international pedigree. It came from an obviously perturbed telecoms rival.
Chris Hanson
spikejm72@yahoo.com
Whoever jumps the highest wins!
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The discourse concerning Digicel's call for strict regulatory and fiduciary oversight of the CWC acquisition of Columbus International needs to go beyond the classic 'sour grapes' response being levelled at the Ireland-based firm from almost every corner of society.
Customers and detractors alike have been lambasting the once revered 'bigger, better network', especially via social media, in a manner that reminds me of the contempt many Jamaicans held for the stodgy Cable and Wireless monopoly in the pre-liberalisation era and shortly after.
CWC spent US$3 billion on the deal. Digicel has admitted it offered US$2 billion. Is it that Digicel's bid could not stand up to the scrutiny of the very regulators it is now asking to probe CWC's alleged extravagance?
Let's face it, underpayment for such a major asset would attract stringent regulatory scrutiny as much as overpayment. One billion US dollars could easily swing the pendulum in either direction. It is not the place of a spurned bidder, as Digicel appears to be in this case, to pronounce on such a matter.
Basic market theory dictates that the ultimate price of an asset is generally determined by what buyers are willing to pay for it. Interested buyers see opportunity and they jump at it. Whoever jumps the highest and times the perfect catch wins! Simple.
The effect that this rather curiously timed announcement from Digicel could have on the Financial Times Stock Exchange (FTSE) in London, where CWC trades, must not be understated. Announcements of this sort can cause jitters among investors and must, therefore, not be taken lightly.
Indeed, even here at home, where over 20,000 Jamaicans own shares in CWC's subsidiary, LIME, shockwaves from the Digicel announcement could also hurt local investors. Perhaps the major calming factor for local and overseas investors and the general public would be that the source of this information was neither an acclaimed global asset management firm, nor did it originate from a leading securities and brokerage house with international pedigree. It came from an obviously perturbed telecoms rival.
Chris Hanson
spikejm72@yahoo.com
Whoever jumps the highest wins!
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