Sunrise promotes merger with UPC to customers
Sunrise has launched a promotional campaign in the battle to acquire UPC—not only targeting shareholders, but also customers.
In an e-mail and with a short cartoon, the telecommunications provider wants to show its subscribers and prepaid users that they too would benefit from a takeover of the cable network operator.
Specifically, Sunrise emphasizes that a merger would combine the infrastructure and knowledge of the two companies and therefore Sunrise and UPC could achieve more together. Thus, there is talk of the best "high-broadband network" and best 5G network that would be created with a merger. In addition, Sunrise promises that with a merger, customers should expect "more performance at better prices".
It is not unusual for Sunrise to advertise the acquisition of UPC to its customers. In other company acquisitions and takeovers, the parties involved have also advertised their plans to the public, although in the end it was shareholders, authorities or the courts who decided whether the deal went ahead. For example, in the battle over the sale of construction chemicals manufacturer Sika to the French Saint-Gobain Group, the various camps involved mounted veritable PR offensives.
Sunrise wants to take over UPC for CHF 6.3 billion. The German company Freenet, which holds around a quarter of all Sunrise shares, is particularly opposed to the planned merger. But other larger shareholders have also publicly voiced criticism of the purchase of UPC. Whether the planned deal goes ahead will be decided by Sunrise shareholders at an extraordinary general meeting in October, where a decision will be taken on its financing. On the other hand, the Swiss Federal Competition Commission must also give the go-ahead for the project. (SDA)
