Swiss telecom Dawn touts $6.Four billion UPC deal, blasts shareholder as ‘self-serving’

FILE PHOTO: The corporate's brand is pictured at a store of Swiss telecoms firm Dawn in Zurich, Jan. 14, 2015. REUTERS/Arnd Wiegmann/File Photograph

ZURICH (Reuters) – Swiss telecommunications firm Dawn Communications (SRCG.S) on Thursday escalated its defence of its deliberate takeover of Liberty International’s (LBTYA.O) Swiss unit UPC, touting extra synergies and blasting a shareholder that’s combating the deal.

German telecoms group Freenet (FNTGn.DE), Dawn’s largest shareholder, has known as the 6.three billion Swiss franc ($6.41 billion) takeover unfavorable for present shareholders.

In a broadside calling Freenet “self-serving,” Dawn touted up to date expectations of 280 million francs in annual synergies from shopping for Liberty International’s UPC Swiss unit, 45 million greater than beforehand introduced.

Freenet was not instantly accessible to remark.

The Swiss firm stated these advantages, together with improved efficiency of UPC, would permit it to extend leverage and scale back the dimensions of the 4.1 billion franc rights difficulty it foresees to pay for the deal by about 1 billion francs.

Dawn stated one-off integration prices wanted to realize the upper synergies are anticipated to extend from 140-150 million to 230-250 million francs. It added Freenet had rejected its proposed modifications.

“Dawn views Freenet as guided by its personal short-term monetary constraints and self-serving goals which it seeks to unravel on the expense of Dawn and its shareholders,” Dawn stated, including its board has determined to exclude Freenet from deliberations on the deal.

Dawn second-quarter web revenue rose to 27 million francs, from 24 million francs within the year-earlier interval, the Swiss firm stated. Income fell 1.7% to 455 million francs, which Dawn stated resulted from decrease cellular {hardware} and hubbing gross sales.

Reporting by John Miller, enhancing by Silke Koltrowitz

Author: Maxwell C.

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