Moving from $3.06 down to $3.04, Singtel lost another S$318.536m today adding to a total of S$3,822.432m from before the fall.

Bharti last trade is at Rs 334.65. From its previous of Rs 435.5, the share has lost about 23.2% or Rs 383 billion (S$11.5b). At 30%, Singtel lost S$3.46b.

Comparing S$3.82b losses of Singtel market capitalization to S$3.46b losses in terms of holding Bharti shares mark to market, it can be said that the losses is efficiently reflected into Singtel's share prices at S$3.04. It is possible that Singtel is under valued by S$0.36b or S$0.02.

Bharti short term outlook is as illustrated by the indian market analysts. It is generally expected that the stock stay afloat above Rs 350 and target of Rs 356.Latest is by Mohindar in an interview on CNBC mentioned that despite the shorts are limited, there will be a long bottom before the share picks up strength to move up.

Oct 08, 2009    Bharti Airtel can slip 4-5%: Mohindar
Oct 08, 2009    Hold Bharti Airtel, target of Rs 390: Sharekhan
Oct 08, 2009    Bharti Airtel has support at Rs 330-350: Gujral
Oct 07, 2009    Reduce Bharti Airtel, target of Rs 356: IIFL
Oct 07, 2009    Hold Bharti Airtel: Gujral
Oct 07, 2009    Buy Bharti Airtel at Rs 350-360: Harihar
Oct 06, 2009    Bharti Airtel has support at 320-350: Gujral
Oct 06, 2009    Bharti Airtel has support at Rs 350-370: H Kapadia
Oct 06, 2009    Buy Bharti Airtel at Rs 365-370: Bhamre
Oct 06, 2009    Bharti Airtel has support at Rs 363-365: Anu Jain
Oct 05, 2009    Buy Bharti Airtel, says Dhawan
Oct 05, 2009    Don't buy Bharti Airtel: Baliga
Oct 05, 2009    Bharti Airtel has target of Rs 485: M Thacker
Oct 05, 2009    Buy Bharti Airtel on dips: RR Financial Consultants

Given the immense downside already, I think this price of $3.04 is fairly reasonable. In fact, it might be slightly ahead of the fall. Bharti vs Singtel market capitalisation is S$38,271,828,230.32 vs S$48,417,472,000.00 as of market close. Breaking into parts, Singtel currently have 30% or S$11,481,548,469.10 in Bharti. The remaining of Singtel market cap worth S$36,935,923,530.90, or $2.32 per share, is elsewhere.

Each time Bharti fall(rise) by Rs 1.39, Singtel lose(gain) an amount equivalent to 1 cent per share. 5% downside is Rs 16.73 or 12 cents equivalent. Rs 15.35 minimal upside is 11 cents upside. This will create a trading range between S$2.92 to S$3.15 purely in response to Bharti news. However, Singtel has a large portion of other businesses that is unaffected and still doing well or improving.

Earning season is coming again. Singtel's strong earning growth remains intact and is likely to announce some healthy results despite the net asset valuation expected to fall if the mark to market was done for Bharti. Singtel's recent initiatives and iPhone sales are likely to improve operating income. Moreover, the EPL rights are still "valuable".

Bharti, too, is expected to grow rapidly and report strong results. It should still be noted that the recent market movement were on the basis of speculation of a highly likely government regulation for more competition. This would affect future earnings of telecoms. However, Bharti is diversifying from India already but not as much as desirable to not be affected by this news.

I believe next month's earning will send Singtel back to $3.30 and above. *one other point is that past Bharti surges in stock prices did not affect Singtel by as much or as efficiently. It might be true that Singtel is undervalued.

lol anyway i dun care as well.

I vested in both singtel and starhub. I bought both at the bottom. So either one has good news, i just stop loss on one and ride on the other stocks to gain profit

I am on the same opinion. it is about time for IDA to map out the future direction for this broadcasting industry. we need a versatile framework that would allow fair competition, which will drive down subscription cost while concurrently supporting multiple content provider. Most importantly, it must blend into part of this futuristic network that the government spent so much on.

It cannot be S1 says lets work with telephone line hdtv and S2 says lets watch cable hdtv. What if M3 says lets do wifi hdtv? how many standards do we as a small country able to support for their economy of scale. also, S1 tries to overbid S2, M3 tries to overbid S1. it is endless. ultimately, we all know firms are there to make money. like our bus and mrt services which integrates and serve different routes, no one is complaining that they are profitable and getting bonuses. people are upset because suddenly they have to pay more.

Singtel can claim a lot when it comes to comparison to say its cheaper than before. but things don't come in one by one, like our government's favourite thing "package". there are people contracted in package 1 or 2, your new item just don't fit in and yet it is why they contracted to get in the first place.

Starhub is not going to say sorry to subscribers for not getting epl in their sports package, they have singtel to thanks for overbidding. singtel subscribers are not going to thank singtel, they have more subscriptions to pay to get what they want.

talk about disservice to the nation, while we know singtel is very singapore and very government, this is the talk of the town i guess.

My two-cent worth of comments :

1. Starhub did not make from the Sports channels previously

2. Singtel needs to spend $$$$ to upgrade its system and connectivity/capture areas

3. Not many Starhub subscribers will switch over and will just retain it for other entertainment/news/documentary channels

4. The ROI will take years for Singtel

5. Getting the rights is just to save face for Singtel and Starhub in this instance is prudent.

6. M1 and Starhub may just join force to break the monopoly - our IDA may also do something about this as there are so many unhappy subscribers.

Doesn't look good the selling volume's inching upwards and prices are inching down.

Alittle frustrated here cos vested.

It depends how we see this...

First view, if successful, it means the market is willing to fund the company and see no further risks in its long term repayment capability. this is because the benchmark rates are the minimum acceptable interest over treasury rates that compensates buying non-treasury bond.

Second view, current treasury rates are higher than in normal times, issuing now means you are paying more interests even if it is benchmark.

Third view, optus is in crunch problem? Never heard of any requirements for cash previously during results.

Fourth view, major plans coming up for optus. is there such a market still in aussie? no disclosure so far.

A long time ago, i remember all the companies like debt and like to stay leveraged. this is because the market's valuation method actually accredit more value for being leverage. those were the past. now people see leverage as risk and share needs to be traded at appropriate discounts from the potential for people to take such risks. 

Until more details, it is generally not good news.

HONG KONG/SYDNEY, Oct 8 (Reuters) - Optus Finance, a unit
of  Australia's second-largest telecom operator SingTel Optus,
is looking to sell a benchmark 10-year eurobond issue, two
sources who have seen the terms said on Thursday.

 A benchmark size issue usually means $500 million.

 Preliminary pricing suggests around 160 basis points over
U.S. Treasury, one of the sources said.

 Citigroup (C.N), HSBC (HSBA.L) (0005.HK) and JPMorgan
(JPM.N) are jointly leading the issue, which is expected to
price by Friday.

 The borrower is Optus Finance Pty, the financing arm of
Singtel Optus, which will be the guarantor of the issue .

 The issue is expected to be rated Aa3 by Moody's and A-plus
by S&P.

 SingTel Optus, which is owned by Singapore
Telecommunications (STEL.SI) (SGT.AX), declined to comment.

 (Reporting by Cecile Lefort and Umesh Desai)