Why Bharti’s desperation for overseas acquisitions ring a bell?
Bharti is getting desperate for overseas acquisitions after a failed swap merger with MTN. Is this reason enough to ring a bell? Well it is. As an investor it gives me a signal that Bharti insiders feel that there are little growth opportunities for its telecom operations in India. Market is saturated no doubt, but Bharti is caught with its pants down in this market.
Overseas acquisitions make sense if they are at right valuations in growing economies. Buying a piece of asset in Bangladesh or suburban Africa shows the desperation of a company which has established itself as a hallmark of service in the telecom space. As an analyst I disagree with Bharti’s philosophy going forward. It failed to innovate and divert funds for R&D at the peak of its life cycle. It is now blessed with huge reserves and assets, but like an old man the company is facing an erectile dysfunctional.
I would like to see Bharti going out and buying startups that can give it an opportunity to change the rules of the game, not only in highly regulated and competitive Indian market but innovative and fast changing global marketplace. Go Bharti Go! Opportunities abound, and the future is bright, but don’t play around with shareholders money.
Bharti is getting desperate for overseas acquisitions after a failed swap merger with MTN. Is this reason enough to ring a bell? Well it is. As an investor it gives me a signal that Bharti insiders feel that there are little growth opportunities for its telecom operations in India. Market is saturated no doubt, but Bharti is caught with its pants down in this market.
Overseas acquisitions make sense if they are at right valuations in growing economies. Buying a piece of asset in Bangladesh or suburban Africa shows the desperation of a company which has established itself as a hallmark of service in the telecom space. As an analyst I disagree with Bharti’s philosophy going forward. It failed to innovate and divert funds for R&D at the peak of its life cycle. It is now blessed with huge reserves and assets, but like an old man the company is facing an erectile dysfunctional.
I would like to see Bharti going out and buying startups that can give it an opportunity to change the rules of the game, not only in highly regulated and competitive Indian market but innovative and fast changing global marketplace. Go Bharti Go! Opportunities abound, and the future is bright, but don’t play around with shareholders money.
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