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Sunrise in takeover talks for Liberty Global unit - Report

Mna News - Published on Thu, 07 Feb 2019

Image Source: Reuters
Reuters reported that Switzerland's Sunrise Communications Group has confirmed it is in talks over a potential acquisition of broadband provider Liberty Global's Swiss business UPC Schweiz. Analysts have said a tie-up makes sense, given that Sunrise and UPC's fixed and mobile services would make the combined entity a stronger rival to the dominance of state-controlled Swisscom.

Barclays analysts said that "We also see 1-2 billion Swiss francs ($3 billion) of potential synergies."

Liberty has been hurt by weak operating momentum at its Swiss unit, making reduced exposure to the Alpine republic attractive for shareholders. The cable provider has already unloaded its unit in neighboring Austria.

Sunrise confirmed late on Tuesday that it is in negotiations and that the proposed deal would not alter its progressive shareholder distribution policy, allaying analyst fears of reduced annual payments.

UPC Schweiz declined to comment on Wednesday.

Analyst estimates give Liberty's Swiss unit a valuation of about 4.9 Swiss billion francs for a business that generates estimated core profit of about 700 million francs.

Source :

Posted By : TelecomGuru on Thu, 07 Feb 2019
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