German cableco Primacom has rejected an unsolicited takeover offer from larger rival Tele Columbus, saying it envisages itself as a buyer rather than a seller in any in-market consolidation deal.
In a statement, CEO Joachim Grendel said: “We are in a…
German cableco Primacom has rejected an unsolicited takeover offer from larger rival Tele Columbus, saying it envisages itself as a buyer rather than a seller in any in-market consolidation deal.
In a statement, CEO Joachim Grendel said: “We are in a good position to play a role in the consolidation of the German cable industry, but we are buyers not a takeover target.”
Grendel stressed that Primacom has a solid balance sheet and owners with the financial means to support it and, as such, the company is well-positioned to expand.
“Our growth plan is fully funded until 2017,” he said.
Tele Columbus CEO Ronny Verhelst recently told a German weekly that the company had submitted an offer for Primacom and was in talks with the target company.
However before that, Primacom MD Wolf Waschkuhn said his company had made bids for Tele Columbus’ Berlin assets and for Deutsche Telekabel, another player in the field.
Hanover-based Tele Columbus, Germany’s third-largest cableco, has been up for sale repeatedly in the past but failed to find a buyer.
This year, Kabel Deutschland tried to acquire the company but abandoned the plan following resistance from the German antitrust regulator.
TelecomFinance later reported that Rothschild was advising the company on a new sale attempt, with private equity firm CVC Capital reportedly among those interested in the company.
Tele Columbus was not immediately available for further comment.
