Telecoms overpriced in short term

As Vodafone bids for Mannesmann there are plenty of fund managers who see telecom prices now reaching unrealistically high levels. After a short cooling down period, the past month has seen European telecoms go through a resurgence helped by the bid now taking place. John Ewart, investment manager with Britannia Asset Management, says: "We feel the telecoms market should take a pause for breathe and it cannot justify some of the current valuations at these prices. However momentum can be a strong driver of share prices in the short term." An example of the sector's amazing run is the rec...