Deluge of Telecom Stocks May Come

A glut of telecom offerings is expected to inundate stock markets next year, as European and Asian governments try to exploit the industry's rebound to raise some badly needed cash, according to the WSJ.

"Investors will be swamped next year with new telecommunications stocks, as European and Asian governments seek to exploit the rebound in the industry's fortunes to raise badly needed cash.

In Western Europe alone, analysts expect governments to offload about €20 billion ($24.97 billion) of shares -- about six times the figure in 2003 -- by selling stakes in national telephone companies. Many of the potential sellers need the money to make up for a shortfall in tax revenue following several years of lackluster economic growth".

emily | 3:21 PM | News, Buzz |
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