Deal worth billions: Sunrise major shareholder votes against takeover of UPC
At the end of February, Sunrise announced the acquisition of UPC Switzerland for CHF 2.7 billion. The decision to purchase UPC was made against the wishes of Sunrise's main owner, as the Handelszeitung writes in its latest edition.
"On February 27, as Freenet's representative on the Board of Directors, I voted against the planned takeover," says Freenet CEO Christoph Vilanek. The German telecoms provider holds around a quarter of all Sunrise shares. He had already clearly communicated to Sunrise managers in January that "we cannot approve the deal and its financing logic in this form".
Sunrise does not wish to confirm that Freenet has opposed the negotiated Binding Agreement in the Board of Directors. Meanwhile, Freenet warns of the negative consequences of the deal: "If the takeover goes ahead as planned, Sunrise's existing shareholders would suffer massive damage. There is a threat of losses of up to 30 percent from the share's former high," says Vilanek.
Despite resistance from the major shareholder, Sunrise is confident that a majority will approve the deal at the extraordinary general meeting in the fall: "Investors who don't like the transaction have already sold and new investors who see the advantages and value generation have bought," says a Sunrise spokeswoman.
