\tSwiss mobile operator Sunrise defended against scathing criticism of its proposed CHF6.3 billion ($6.4 billion) acquisition of cable company UPC Switzerland [1] by largest shareholder Freenet, slamming the investor as self-serving.<\/p>\n
In a statement, the operator said opposition to the deal by Freenet was unjustified, adding the stakeholder was: \u201cguided by its own short-term financial constraints and self-serving objectives which it seeks to solve at the expense of Sunrise and its shareholders.\u201d<\/p>\n
In an attempt to accommodate some of Freenet\u2019s criticism of the structure of the deal, Sunrise said it had attempted to make concessions, which were rejected by the investor.<\/p>\n
Following what Sunrise deemed as \u201cinappropriate requests,\u201d Freenet’s board representatives will be excluded from deliberations related to the proposed transaction.<\/p>\n
Sunrise added: \u201cThe board is convinced that the acquisition of UPC Switzerland creates a stronger and more valuable Sunrise. Sunrise has a clear plan to realise the synergies quickly to create compelling and attractive offers to customers and provide a state-of-the-art-telecommunications infrastructure for Switzerland.\u201d<\/p>\n
The comments come after Freenet, which owns almost a quarter of the Swiss operator, vowed to vote against the completion of the UPC deal at an extraordinary general meeting expected to take place by the end of the year.<\/p>\n
In its statement, Freenet made a number of criticisms of the deal. Among these, it stated the purchase price and implied valuation of UPC Switzerland was too high and criticised the structure of the transaction.<\/p>\n
It also demanded UPC owner Liberty Global take a stake in the combined company rather than being a cash only deal.<\/p>\n[1] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/sunrise-confirms-cable-deal-talks\/<\/p>\n","protected":false},"excerpt":{"rendered":"
Swiss mobile operator Sunrise defended against scathing criticism of its proposed CHF6.3 billion ($6.4 billion) …<\/p>\n
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