Private Equity Takeover of Telecoms

Telebusillis picks up on an interesting story of the Private Equity company looking to buy TDC (Denmark’s National Carrier). The post refers to a case study looking into the takeover and asks the questions;

Supporters of private equity buyouts claim they introduce a longer term planning horizon for firms with public shareholders who have demanded that management be preoccupied with quarterly earnings improvements and short-term movements of the stock price

It’s an interesting question; are Private Equity companies in it for long term growth or short term gain? The case in question appears to be more of the short term gains than longer term growth. The telecoms market place is undergoing a mini boom right now and it’s interesting to see Private Equity firms moving into this space as they obviously see a growth potential.

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