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Eircom rejects takeover offer

2015-05-20 09:17:00| Telecompaper Headlines

(Telecompaper) Eircom informed the Irish Stock Exchange that it received a non-binding expression of interest from an unnamed company in the first quarter, but rejected the advance because the offer of up to EUR 3.3 billion undervalued the business. The company wrote, "While the bidder was very credible, the board believed that, with the business reaching an inflection point, the indicated price range undervalued the group". After passing this inflection point, Eircom expects to return to growth this quarter. The Irish Times speculates that the interested party was US investment house Anchorage Capital, which held an around 8 percent stake until recently, but according to several sources, bought another 25 percent from Blackstone asset manager GSO in the last few days. GSO has kept around 5 percent of Eircom. The Irish operator would not comment on whether Anchorage was the bidder, but did confirm that it was now its biggest shareholder. Eircom pulled out of a planned IPO last September due to unfavourable market conditions. It was reported at the time that Eircom may have preferred to sell to a single buyer.

Tags: offer rejects takeover eircom

 

Orange secures EC approval of EUR 3.4 bln Jazztel takeover

2015-05-19 14:34:00| Telecompaper Headlines

(Telecompaper) Orange has secured the European Commission's approval of its EUR 3.4 billion takeover of Spanish broadband operator Jazztel after agreeing to a series of concessions designed to address competition concerns by creating a fourth major player in Spain. Orange's commitments will "ensure that a new operator can enter the Spanish market and be able to compete effectively in markets involving fixed internet access services," said the EC in a statement. The EU's antitrust commissioner Margrethe Vestager added that the remedies would allow a new player to enter the market and compete as strongly as Orange and Jazztel so that "consumers in Spain would not suffer from higher prices for fixed internet access services." Orange won the EC's approval by agreeing to divest an independent FTTH network covering 700,000-800,000 households in Madrid, Barcelona, Valencia, Seville and Malaga, five of the largest Spanish cities. In addition, Orange committed to grant the purchaser of the FTTH network wholesale access to Jazztel's national ADSL network for up to eight years, a commitment that would allow the purchaser to compete immediately on 78 percent of Spanish territory, said the EC. Finally, the buyer would also be given wholesale access to Orange's mobile network including 4G services, if it does not already have access to a mobile network.

Tags: eur orange approval takeover

 
 

Charter extends talks on Bright House takeover

2015-05-18 20:04:00| Telecompaper Headlines

(Telecompaper) Charter Communications and Advance/Newhouse have extended talks on Charter's proposed acquisition of Bright House Networks. The companies jointly announced that they remain committed to completing their previously announced takeover on the same economic and governance terms. Their agreement first announced in late March was conditional on Charter completing a deal to acquire assets from Time Warner Cable and Comcast after the latter two's proposed merger. Since the TWC-Comcast deal was scrapped, Charter and Advance/Newhouse have restarted negotiations on the deal. While they have yet to reach a new agreement, they have extended their good faith negotiating period for an additional 30 days. Charter originally agreed to acquire Bright House Networks, which counts around 2 million TV customers and is the sixth-largest cable operator in the US, for USD 10.4 billion. Recent media reports have suggested that TWC may also be looking at a bid for Bright House.

Tags: house bright charter talks

 

BT files for competition approval of EE takeover

2015-05-18 19:52:00| Telecompaper Headlines

(Telecompaper) BT said it made its formal application to the UK's Competition and Markets Authority for approval of the proposed acquisition of EE from Orange and Deutsche Telekom. BT said the acquisition "will be good for competition, investment and innovation in the UK - and that consumers and businesses will benefit as a result". BT agreed in February to buy the UK's largest mobile operator for GBP 12.5 billion. Its re-entry on the mobile market is expected to support a new quad-play offering and strengthen its position among customers on the broadband and TV markets, allowing it to better compete with rivals Sky, Virgin Media and TalkTalk. While the acquisition will not change the number of mobile operators in the UK, regulatory approval may take longer than hoped due to the other pending acquisition in the UK market, of O2 UK by Hutchison Whampoa, owner of 3 UK. In addition, some industry players have raised concerns that BT's dominant position in the wholesale and retail broadband markets may be extended to impact the MVNOs on EE's network. BT said the ability of its landline and mobile rivals to compete with BT using its arms-length Openreach network will be unaffected by the acquisition. Furthermore its market shares in the broadband and mobile markets remain under the threshold that regulators normally look for before considering whether action is required. BT has asked the CMA to proceed directly to a phase 2 investigation into the proposed acquisition in order to speed up the process. The CMA confirmed the request, which would significantly shorten the usual 40-day phase 1 investigation. The regulator will confirm within about three weeks whether it will move directly to a Phase 2 inquiry. In the meantime, it opened a page on its website for industry comments on the proposed acquisition. BT reiterated its expectation that the regulatory process and the EE transaction should be completed by the end of March 2016. 

Tags: of files approval competition

 

888 in takeover approach for Bwin

2015-05-18 09:07:01| BBC News | Business | UK Edition

UK online gaming group 888 says it has made a takeover approach for rival Bwin.party, which has already had a bid from GVC Holdings.

Tags: approach takeover takeover approach

 

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