Liberty Global Inc. (LBTYA, LBTYB) has launched a per-share
offer of 35 euros, or $46.10--equating to $2.5 billion--for the
shares it doesn't already own of Telenet Group Holding NV (TLGHY,
TNET.BT), sticking with its previous bid in the face of the Belgian
cable company's own higher-valuation assessment.
The U.S.-based broadband and cable operator is locked in a
dispute over the valuation of Telenet. Liberty Global already owns
slightly more than 50% of the Belgian company and wants to take it
over completely. In September, Liberty Global made an informal bid
of roughly $2.5 billion, or EUR35 a share, for the shares it
doesn't already hold in Telenet.
Last month, Telenet cited a higher independent valuation, saying
the company is worth between EUR37 and EUR42 a share.
The Wall Street Journal has reported the deal is at risk of
turning hostile.
Liberty Global stood by its September offer, calling it "highly
attractive" for Telenet shareholders and saying it provides a
meaningful premium to relevant benchmarks. It said the offer
represents a 12.5% premium to the Sept. 19 Telenet closing share
price of EUR31.10, a 25.2% premium over the volume weighted average
share price during the 12-month period through that time, and a
4.9% premium over Telenet's all-time-high trading price prior to
the announcement of the offer.
The company, which is focused outside the U.S. and operates
broadband networks in 13 countries, said it had "serious
reservations' about financial projections made by Telenet on Oct.
5.
"Liberty Global does not question Telenet's ability to attract
mobile subscribers in the near term, but fundamentally disagrees
with the aggressive volume, price and profitability assumptions'
from 2014 onwards, Liberty Global said Monday in a statement.
Telenet's projection "does not adequately factor in a competitive
reaction from the existing mobile providers in the market," it
added.
The cash offer is being made through Liberty's subsidiary Binan
Investments BV and shareholders will have until Jan. 11 to tender
their securities into the offer before the initial acceptance
period closes.
Class A shares of Liberty Global were down 0.6% at $61.27 in
after-hours trading. The stock is up 56% over the past 12
months.
American depositary shares of Telenet closed at $23.01 on
Monday, and the stock is up 20% so far this year.
Write to Debbie Cai at debbie.cai@dowjones.com
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