Light Reading
But John Malone may have a fight on his hands as Telenet's advisors believe the Belgian MSO's worth more than what Liberty's offering

Liberty Global Bids $2.5B for Telenet

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
12/18/2012
50%
50%

John Malone's Liberty Global Inc. (Nasdaq: LBTY) has made a controversial US$2.5 billion bid to buy the shares of Belgian cable operator Telenet it does not already own.

Liberty Global may end up with a battle on its hands, because its formal offer, at €35 ($46.15) per share, undercuts the €37 ($48.79) to €42 ($55.39) per share valuation recently set by Telenet and its advisors.

Liberty Global said it had "serious reservations" about financial projections made by Telenet management in October that were used to help establish the higher valuation range. More specifically, Liberty Global questioned a forecast that would require Telenet to boost its mobile market share from 1 percent in 2012 to 16 percent in 2018, noting that the plan is "heavily reliant on growth in outer years and assumes minimal competitive response."

Liberty Global announced an informal offer for the Telenet shares in September. On Tuesday, Liberty Global said its current and unchanged offer is "highly attractive" to Telenet shareholders because it represents a 12.5 percent premium to the Sept. 19 Telenet closing price of €31.10 ($US41.01) per share, and a 4.9 percent premium over Telenet's all-time-high trading price prior to the announcement of the original offer. (See Liberty Global Bids for Telenet Total Ownership.)

Liberty also argued that its offer marks a 15.2 percent premium versus Telenet's "peer group" of large European MSOs, which, in addition to itself, includes Ziggo B.V. , Kabel Deutschland GmbH and Virgin Media Inc. (Nasdaq: VMED).

Liberty Global has a 50.4 percent stake in Telenet. Minority shareholders have until Jan. 11, 2013 to tender their shares and accept Liberty's offer.

Why this matters
A successful bid for Telenet would give John Malone a firmer grip on his already sizable European cable empire, built through a series of swaps and acquisitions.

But Liberty Global may be in for a slog. Telenet's independent directors said Tuesday that they would consider recommending an offer if it was in the range of €39 ($US51.43) to €40 (US$52.75) per share, reportsThe Wall Street Journal, meaning John Malone might have to pursue a hostile bid if he remains unwilling to budge.

For more



— Jeff Baumgartner, Site Editor, Light Reading Cable



(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
1/10/2013 | 4:00:08 AM
re: Liberty Global Bids $2.5B for Telenet


This will be an intereresting battle to track in the coming weeks.  Can't recall too many times that John Malone didn't get what he wanted... but will he budge and up the ante or stand pat on the offer?  JB

Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
Jonestown
Mobile Backhaul: Going to the Dark Side?

10|30|14   |   2:26   |   (1) comment


Heavy Reading's Patrick Donegan shares his view on a dark trend that bubbled up at Light Reading's annual backhaul conference in NYC.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With CEO of SwitchCom

10|30|14   |   4:13   |   (0) comments


SwitchCom, an IT company based in Angola, recommends a variety of Huawei solutions and hardware to their customers in the energy industry.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Ethiopia's Ministry of Water Irrigation & Energy

10|30|14   |   4:08   |   (0) comments


Gosaye Mengistie of Ethiopia's Ministry of Water Irrigation & Energy discusses the collaboration with Huawei in that country.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Dongfang Electronics Corporation

10|30|14   |   5:46   |   (0) comments


Dongfang Electronics Corporation, headquartered in Chengdu, China, is one of China's largest manufacturers of power generators and contractors of power station projects.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Zimbabwe's Customers

10|30|14   |   3:31   |   (0) comments


Representatives of Zimbabwe's Ministry of Power and Development discuss the energy needs of their country as well as new areas of improvement due to enhanced ICT capabilities.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Colbún Chile

10|30|14   |   4:29   |   (0) comments


In Chile, an aging energy infrastructure was in dire need of a modern update. Claudio Valenzuela of Colbún discusses how Huawei's ICT solutions continue to provide crucial information to improve the grid and how an in-country engineer is a cricial asset.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With YuLiao

10|30|14   |   6:27   |   (0) comments


Yu Liao, chairman of the Chinese Association for Renewable Energy in Germany, discusses the role that ICT solutions play in helping to grow renewable energy resources in Germany.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview

10|30|14   |   2:54   |   (0) comments


Sifang has been working with Huawei on several projects. JingTao Wu, Assistant President of Beijing Sifang Automation Co. Ltd., believes that the cooperation with Huawei can facilitate Sifang's process of internationalization.
LRTV Huawei Video Resource Center
A Better Connected Smart Grid: Powering Laos

10|30|14   |   5:38   |   (0) comments


Representatives of Electricite Du Laos (EDL), a state-owned corporation, discuss the importance of ICT solutions in serving their country's energy needs.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Junwei Lu

10|30|14   |   4:50   |   (0) comments


Professor Junwei Lu of Griffith University Australia describes his work with micro grid technology and the future of the power industry.
LRTV Documentaries
The Next-Gen Network Disconnect

10|29|14   |   01:23   |   (2) comments


There's a lot of talk about making networks more simple with SDN, NFV and next-gen broadband technology – but what about the complexity of introducing such capabilities?
LRTV Custom TV
Grow Your VPN Service Revenue

10|27|14   |   4:00   |   (0) comments


Watch how CSP product managers can better differentiate and maximize the value of their Internet, VPN and cloud services for business services customers, by adding premium application performance visibility to their data services.
Upcoming Live Events
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
May 6, 2015, McCormick Convention Center, Chicago, IL
May 30, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Microsoft's Skype Embraces WebRTC on IE
Sarah Reedy, Senior Editor, 10/27/2014
FTC Slaps AT&T With Throttling Lawsuit
Sarah Reedy, Senior Editor, 10/28/2014
Wheeler Gets Down With OTT
Mari Silbey, Independent Technology Editor, 10/29/2014
China's MVNOs Hit the Wall
Robert Clark, 10/27/2014
Let's Not Kill SDN & NFV With Silos
Francois Locoh-Donou, Senior VP, Global Products Group, Ciena, 10/28/2014
Like Us on Facebook
Twitter Feed