Liberty Global bids €1.96 billion for remainder of Telenet

Liberty Global bids €1.96 billion for remainder of Telenet

US cable operator Liberty Global has entered a €1.96 billion bid to acquire the remaining shares in Belgium’s Telenet.

Liberty already owns 50.4% of Telenet and has been the controlling shareholder in the company since 2007.

Telenet offers triple play TV, broadband and fixed telephone services as well as mobile services through an MVNO agreement with Mobistar.

Liberty’s offer of €35 per share is a 14% premium over the average closing price of the company over the last month. Telenet’s shares were today suspended from trading.

In terms of revenue the company was Liberty’s second largest business after its main European division UPC.

Telenet’s board said that it would review the offer and according to local laws had to appoint independent experts to analyse the bid.

It was also announced today that Telenet had increased its outlook for 2012 core profit and revenue growth, rising to 7 to 8% from the 5 to 6% previously forecast.

Telenet lost a legal battle earlier this month and will be forced to offer wholesale access to its network unless the decision is overturned in a pending court case.

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