Kleinwort Benson tips Inmarsat and Canada’s Telus for investors’ Vodafone windfall money

4th September 2013

Some of the discussion surrounding Vodafone and the Verizon payout has focused on whether it is better to hold Verizon or to hold Vodafone now that the two companies’ fortunes are very definitely no longer linked.

But one investment bank Kleinwort Benson has suggested investing in neither with the proceeds even if investors are seeking exposure to the telecoms market. Nicholas Lowson, US equities analyst has suggested investors look at Inmarsat a firm headquartered in the UK but which still has US exposure which will contrast with the Europe-focused Vodafone.

The note says: “Investors wanting to stay exposed to the telecoms market should consider Inmarsat which will benefit from the increasing need for global connectivity in the maritime and aviation sectors and will benefit from the potential resumption of payments from its US spectrum assets”.

Lowson also points out to potential fans of Verizon that  it “may have got rid of its Vodafone encumbrance but it also has much more debt.

“ Investors who want to stay in the North American market should instead consider Canadian telecoms company Telus.  It has good growth prospects and now, thanks to the deal Vodafone/Verizon deal, an improved Canadian competitive landscape – Verizon CEO Lowell McAdam this week ruled out further Canadian expansion. The Telus share price had been subdued on fears Verizon would expand further in Canada.”

 

 

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