As written in wall street journal, a French company would like to invest in another company out side of the country. France Telecom said they have agreed to buy forty percent The company they are investing in is Meditelecom. It is the second best telecommunication company in Morocco. The French company “France telecom” is looking to make the revenue higher from outside of Europe. A spokesman from had said to the wall street journal that the French company agreed with the Morocco’s company in 2011 the share will go to 54% and in 2015 the share will go to 59%.
As noted in the wall street journal, the biggest reason for France Telecom to move out of France is for them to grow fast in markets. Africa would be there best place. Meditel has over ten million costumers and 37% is there market share. By the end of the year, the stake buy is expected. France telecom Chief Executive Stephane Richard said “The acquisition of this stake in Medi Telecom is the first concrete step in our new policy of expansion outside Europe, and contributes to our stated aim of doubling our revenue in Africa and the Middle East over the next five years” which I took from the wall street journal.
I personally think it is a great idea for France Telecom to go invest in Meditelecom. From reading the article in the wall street journal, I understood that Meditelecom the Morocco’s Company is doing very well and is getting a lot of profit. They also have a lot of subscribers. I always think a company should always invest out side of there country. Spread your apples in different baskets. And not only the French company is investing out side the country, its also going out side of the continent. As I read in the wall street journal, the French company is also thinking of investing in Middle East.
http://online.wsj.com/article/SB10001424052748704129204575505733072743138.html?mod=WSJ_Tech_LEFTTopNews
It makes total sense what the french company is doing and since this merge probably has millions of dollars at stake they must have an extensive knowledge about the market in that specific place. This companies usually dont rush themselves when they take over other companies; instead they do a lot of research using tools such as performance indicators and overviews of the trend's behavior in the past years.
ReplyDeleteFrance Telecom seems to be a big and prosperous company and since they are part of the telecom industry too they should know what they are doing. This merge that is hapening is predicted to show good results, as you state in the first paragraph, but sometimes it is imposible to predict some important factors such as new competition or even inflation that can turn upside down all those profitful predictions.
Claudio Lacayo