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Sunrise plans to buy Liberty Global’s UPC, get an anti-trust green light

FILE PHOTO: the logo of The broadband and telecoms provider UPC Switzerland has to be seen to have its registered office in Wallisellen, Switzerland, February 6, 2019. REUTERS/Arnd Wiegmann/File Photo

ZURICH (reuters) – The Swiss anti-trust authority has approved the Sunrise and Communication – to 6.3 billion Swiss francs ($6.36 billion) in a takeover bid by Liberty Global, UPC’s business, setting up a confrontation with the telecom company, as well as the enemies of, the deal.

Sunrise — are locked in a feud with its biggest shareholder, the German’s Having, which is opposed to the deal and is now planning for an extraordinary general meeting of shareholders to be held on Oct. 23 to vote on a capital increase to finance the acquisition.

Freenet, which owns a quarter of the sun, and has been joined by a few other investors are in for the fight of the transaction on the basis of the price level is too high, a proposal for a 4.1 billion-franc capital increase that would dilute their holdings, and the Swiss company could wind up with all of the risks involved, while Liberty Global has a very lucrative and barred shut.

“The Swiss competition authority (COMCO) has decided to raise no objections to the acquisition by UPC in Switzerland, by the rising of the sun and has now agreed as part of the transaction,” Sunrise said on Thursday. “The approval was granted without any terms or conditions which may be imposed on them.”

COMCO said it expects the deal to the competition.

Sunrise, at its meeting of investors, in the hope of convincing them to support the transaction, against, Having, it is hard to resist. Sunrise’s Chief Executive, Olaf Swantee, has signalled a willingness to amend the funding of the deal, although the details are not yet open to the public.

Sunrise said the COMCO’s blessing was a confirmation of his own view that the merger would give them a significant competitive advantage, which makes it an even stronger competitor,” Switzerland-is the dominant communications service provider, through the state-controlled Swisscom.

Report by John Miller; Editing by Michael Shields

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