Sunrise burying the Acquisition of the largest Swiss cable network operator UPC finally – at least in its original Form of thought. Possible additional article in the contract of purchase with UPC parent company Liberty Global to make this.
The clauses that Sunrise, or Liberty Global, the to February 2020, a valid agreement, at the earliest, after the 11. November unilaterally can terminate. Sunrise made on Tuesday of this right, as it became known.
For the adventure of the second largest Telecom provider in Switzerland, expensive teaching pays money The company must raise up to 125 million Swiss francs. The money comes from the customers and shareholders. 50 million francs as a penalty fee, so that Sunrise can leave the contract prematurely. Another 70 to 75 million Swiss francs for the additional cost due, for instance, to the advice given by business lawyers.
, consumers benefit
For the millions of customers of Sunrise and UPC to the new starting position changes for the time being nothing. Both companies have announced, in the case of a Failure of the deal alone to continue. The spat to the Acquisition of UPC for the consumers benefits.
make yourself more attractive to the Sunrise shareholders, and improved the cable network operator to its offerings. Not to mention the new TV platform Horizon, and the nationwide minimum speed on the Internet of 1 Gigabit per second.
Sunrise is situated in the mobile radio well. In the construction of the ultra-radio network 5G, and the launch of new 5G-fast mobile products, the company is the market leader Swisscom and the smallest provider to the Salt drives in front of it.
The clients of Sunrise and UPC are likely to hear soon, that the management of your suppliers are talking again about a merger. Liberty Global hopes to continue on a new line of business for its subsidiary, UPC. Liberty Global CEO Mike Fries announced in the night on today, wanting so contact with the Sunrise-the Board of Directors, as well as the largest Sunrise-a shareholder in Freenet record.
This can only mean one thing: Liberty Global for UPC, except for Sunrise and any other interested parties, even abroad.
the signals of The potential recruits, however, are contradictory. Sunrise CEO, Olaf Swantee, issued to the projects of Liberty Global, not a final rejection, stated today only: the Sunrise, the focus is now to go it alone. Its in the October statement, the Deal was “dead”, referring to the initial funding proposal.
Freenet is shared, however, compared to Tagesanzeiger.ch/Newsnet with, there is no need for further talks.
it is Clear, therefore, that Liberty Global must make massive concessions. A new funding model could look like this: The UPC owner lowers the sale price for the cable network provider of the original 6.3 billion francs to 4.5 billion.
at the same time, Sunrise, Liberty Global in the form of shares pays instead of the initially provided entirely in cash. In order to cope with the billion sum would be a capital increase is necessary. A part of the newly created Sunrise title would go to the seller. So that Liberty Global would be a major shareholder and could benefit from an increase in the value of the merged company.
such A scenario was least in the case of significant shareholders in the round, which were not entered during the takeover battle, especially in appearance. These circles were in favour of the industrial logic behind a merger of Sunrise with UPC, found the purchase price, but outrageous.
Liberty Global boss Fries is not only need to entice you with a better offer, but also to draw Lessons from the mistakes of the Sunrise-a top CEO Swantee and Chairman of the Board Peter Kurer. For months both of them had tumbled for the Deal, and prayer stresses the mill-like the strategic sense behind it.
How big is the resistance of major shareholders really had Swantee and Kurer hidden or did not want this fact to be true. The Sunrise President even had two critical members of the Supervisory Board from meetings to exclude.
delicacy
Mike Fries and will therefore need a lot of tact and good arguments, to organize, if necessary, a majority vote against Freenet for a new UPC Takeover by Sunrise. Under pressure to act, Liberty Global, and not Sunrise, what is the negotiating position of the Swiss supplier and not least of Freenet strengthens now.
Because of the Telecom group from London wants to get rid of its subsidiary UPC – literally at any price.
Created: 13.11.2019, 13:05 PM
