Frauds, Swindles, and the Credit Cycle
The implosion of an asset price bubble always leads to the discovery of fraud and swindles. Enron began its tumble into bankruptcy within a few months of the peak in US stock prices. At about the same time MCIWorldCom began a series of announcements about some financial accounting mishaps that eventually culminated in the largest bankruptcy ever; the firm had overstated investments and understated expenses by $10 billion. The junk bond market collapsed after the increase in interest rates toward the end of the 1980s and the sharp decline in stock prices in October 1987.
With the use of data and concrete examples, such as ::: a mini-case study, and a focus on the top 20 global players, this ::: thesis aims at tackling Capex issues in the telecom industry by ::: covering: – Uses, levels, inefficiencies in Capex management, ::: notably via insider perspective, and their impacts on capital ::: allocation; – Financing of Capex via debt and the recent ::: development of asset monetization; – Specific trends (NSA, VNOs) ::: and M&A in the telecom industry and their impacts on Capex, via ::: the case study of the French SFR-Numericable ::: transaction.