Britain's Colt Telecom shares rise on takeover hopes

LONDON, June 9 (Reuters) - Shares in Britain's Colt Telecom (LSE: CTM.L - news) rose more than three percent on Wednesday on persistent speculation that France Telecom (Paris: FR0000133308 - news) or Cable & Wireless (LSE: CW.L - news - msgs) might be mulling a takeover.

Dealers said talk that France Telecom might be looking at Colt Telecom, or another UK alternative carrier, has been circulating in the market for some time.

Recent talk that Britain's Cable & Wireless or France Telecom are looking at acquisitions has boosted shares in a range of alternative carriers including Colt, Kingston Communications and Easynet .

"We don't comment on market speculation," said a spokeswoman for Colt Telecom. A France Telecom spokesman declined to comment. Cable & Wireless also declined to comment.

One analyst doubted that either Cable & Wireless or France Telecom would be in a position to make a major purchase.

"It's very hard to believe that Cable & Wireless would go for a deal that would be dilutive," said the analyst, who declined to be named.

By 1051 GMT Colt Telecom's shares were among the mid-caps biggest gainers, up 3.5 percent at 88-1/2 pence, valuing the company at around 1.3 billion pounds ($2.4 billion). C&W's shares were up one percent at 131-1/4p.

In Paris France Telecom's shares were down 0.2 percent at 20.29 euros.

The analyst added that Colt Telecom did not fit with France Telecom's core business. (Additional reporting by Friedel Rother, Steve Slater and Chris Noble in Paris)

Pity no one is following COLT TELECOM - IF IT INCREASES ANY FURTHER THIS WEEK OR NEXT THEN IM )))...ROSE TDAY TO 88.5P...

I just posted this with regards to EASYNET (ESY)....looks interesting as well. real t/o possibility for either name.

The possibility is strong as the Colt, could be into making profits in the next 12-18 months, and capitalisation at 1.2B is still low at present, telecoms have been quiet too long, so action in the market could be brewing...

Whatever the case the Colt is Back - closed at 88p - next chart range equals 95p-1.00+, though thats still 35% down from recent high of 1.31.


Have Fun, DYOR and Enjoy..Jules99.

Today's Daily Telegraph :

Second-liner Colt Telecom picked up 2.5 to 88p on speculation that the telecoms group is a bid target. Williams de Broe said hopes of a merger between Colt and France Telecom are "not implausible" and "most market commentators wouldn't argue against the case for some consolidation of the sector".

However, the broker repeated its sell recommendation, saying: "Until there are some facts behind the whispers, we continue to believe that Colt should trade on the basis of the fundamentals and here we believe the share price reflects too much good news."

http://www.money.telegraph.co.uk/money/main.jhtml;sessionid=2W12BQ42VB3DPQFIQMFSNAGAVCBQ0JVC?menuId=243&menuItemId=2839&view=&grid=M3&targetRule=1&_DARGS=/money/Menu/SideMenuItemsFrag.jhtml.1_A&_DAV=-

Also take a look at Easynet as an alternative UK target for France Telecom and C&W. Would be an interesting tuck in acquisition for either. I believe on any measure ESY are well undervalued so worth a speculative punt given that the share price has eroded recently on lack of news.

Whatever happens Colt is Back...and interest is brewing and investors waking up to fact that the possibility is very much there

with Canary Wharf I stated the same, at 1.36p, that it was too low and eventually a predator would strike, it took a while,and eventually it surfaced into the open, the same with MnS when their lowest was hit, a predator would eventually surface.

There's no hurry, in the long term...it always pays off...!
Technical target remains at 95/1.00 in the days ahead.

closed at 87p today, but DOW uptnite...

Have fun and enjoy some sunshine all...Nice!

Hmmm not the take over talk again. Is it Cable and Wireless again or Fidelity...Colt will rise after it has completed it's 5 wave cycle.