The third largest shareholder in Telenet will not accept Liberty Global’s (LGI’s) soon-to-expire offer for all outstanding shares in the Belgian cableco.
A representative of US-based Omega Advisers, which upped its stake in Telenet to 3.35% last…
The third largest shareholder in Telenet will not accept Liberty Global’s (LGI’s) soon-to-expire offer for all outstanding shares in the Belgian cableco.
A representative of US-based Omega Advisers, which upped its stake in Telenet to 3.35% last month, said in an interview that the firm will reject LGI’s €35 per share tender offer, Dow Jones reported.
The US cable giant’s bid to acquire the 49.6% of shares it does not already own, which values the Belgian company at about €2bn, expires on Friday (11 January).
Late last month, Norges Bank Investment Management (NBIM), Telenet’s largest shareholder with a 4% stake, announced that it will not take part in LGI’s tender.
Telenet’s board has reiterated the view that the offer, launched on 18 December, does not reflect the value of the company and its prospects. However, the board has said it would consider recommending an offer of €39 and €40 per share.
LGI has repeatedly said it will not increase its offer price. Last month, the company described it as “highly attractive”, saying it represented a 12.5% premium to the Telenet closing share price on 19 September 2012.
However, Telenet has said the premium is inappropriately low and falls short of the average premium of approximately 20% in other comparable European minority take-out bids.
Telenet, LGI and Omega Advisers were not immediately available for comment.
Telenet’s second largest shareholder is BNP Paribas Investment Partners.
