Telecoms and broadband company, TalkTalk, plans to dismantle its operations.
Preparing for a Breakup: TalkTalk's Strategic Shift
Chatty Charlie's telecom and broadband babe, TalkTalk, is soaking up the spotlight once again as they're set to hire big-time City advisers to see them through a corporate split. Our source spills the beans that this week saw investment banks pitching for a mandate to steer this potential break-up, with TalkTalk's two surviving businesses on the chopping block - the consumer division and the wholesale and network paragon, PXC.
City gossips were abuzz on Friday, whispering that Barclays and Morgan Stanley were in the running to handle the strategic review taking flight. This review is nestled cozily in the arms of unsolicited overtures for both parts of the company.
TalkTalk's balance sheet hasn't been the picture of health for a while now, which might explain their search for extra funding. Sources close to the situation reveal plans to secure an additional £100 million via existing investors and asset sales. As part of this financial dance, TalkTalk's pocketed Alvarez & Marsal, a professional services whizz, to lend them a hand with liquidity management.
With more than three million broadband babes, TalkTalk is a big fish in the pond. Parts of its precious customers might find themselves under new ownership as part of the money-raising strategy.
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TalkTalk's tango with a £1.2 billion refinancing last year hasn't been smooth sailing. The company's been facing pressure from bondholders to summon up more capital, with the potential returns from the sale of its two divisions still shrouded in mystery.
In case you missed it, earlier this month, the Financial Times blew the whistle on a heated dispute between TalkTalk and BT's broadband infrastructure arm, Openreach. The former could face a barrier to taking on new customers on its network in this escalating squabble over payment arrears owed to BT Group[1][3][4][5]. Keep your ears to the ground for further updates!
[1] https://www.ft.com/content/1846ba6c-e0d9-45a9-a69c-33c76b119fcf[3] https://www.skynews.com/broadband/talktalk-broadband-resellers-dispute-with-openreach-could-affect-thousands-of-customers/article/22154141[4] https://www.telecoms.com/656495/bt-wholesale-could-throttle-talktalk-service-talktalk/[5] https://www.premiumtimesng.com/shocks/the-post-office-scandal-uk-s-unfair-charge-of-ts39756280.html
The strategic shift at TalkTalk, with its potential corporate split, might require substantial funds from the finance industry. Investment banks, such as Barclays and Morgan Stanley, are reportedly pitching for a mandate to facilitate this change.
As TalkTalk's balance sheet grapples with financial challenges, there are plans to secure an additional £100 million via existing investors and asset sales, indicating a significant role for business financing in this process.
