Cincinnati Bell Gets Bigger-Than-Brookfield Buyout Bid

The telecom firm's board said it is in talks, but still supports its original offer from Brookfield Infrastructure Partners.

Dan Jones, Mobile Editor

January 24, 2020

1 Min Read
Cincinnati Bell Gets Bigger-Than-Brookfield Buyout Bid

Cincinnati Bell has received an unsolicited offer that is 14% higher than the buyout bid it accepted from Brookfield Infrastructure Partners L.P. on December 23.

On January 22, the provider said that it received a non-binding proposal from an unnamed infrastructure fund ("the Fund"), to acquire all of the outstanding shares of common stock of Cincinnati Bell for $12 per share in cash, compared to the $10.50 bid from Brookfield, in a deal valued at $2.6 billion, including debt.

The company says it "has commenced discussions with the Fund," once its board gave permission. The Cincinnati Bell board, at the moment, said it remains in support of the Brookfield Infrastructure buyout.

Cincinnati Bell runs communications networks in Cincinnati and Dayton, Ohio, and Hawaii, and other subsidiaries, with a footprint of over 1.3 million homes, delivering broadband, video and voice services to residential and enterprise customers. The company is currently undertaking a significant upgrade of its network to next-generation fiber that will support the increased demand for data and the coming of 5G.

Telecom M&A activity by private equity firms has been heating up. In July, Brookfield spent $3.66 billion for Reliance Industries' telecom tower assets in India, and AT&T sold 1,000 cell towers to private equity firm Peppertree Capital Management for $680 million on October 25 2019.

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— Dan Jones, Mobile Editor, Light Reading

About the Author(s)

Dan Jones

Mobile Editor

Dan is to hats what Will.I.Am is to ridiculous eyewear. Fedora, trilby, tam-o-shanter -- all have graced the Jones pate during his career as the go-to purveyor of mobile essentials.

But hey, Dan is so much more than 4G maps and state-of-the-art headgear. Before joining the Light Reading team in 2002 he was an award-winning cult hit on Broadway (with four 'Toni' awards, two 'Emma' gongs and a 'Brian' to his name) with his one-man show, "Dan Sings the Show Tunes."

His perfectly crafted blogs, falling under the "Jonestown" banner, have been compared to the works of Chekhov. But only by Dan.

He lives in Brooklyn with cats.

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