Telenet’s independent directors have said that Liberty Global’s bid for the Belgian cable operator “does not sufficiently reflect the value of the company and its prospects.”
Meanwhile, Liberty Global has said it now has opened its voluntary and conditional cash offer for the outstanding shares opened through its wholly owned subsidiary Binan Investments.
In a statement the independent directors said they understand the rationale and industrial logic behind LGI’s offer but are of the opinion that a price of €35 per share is inadequate as it undervalues Telenet’s future prospects.
The are prepared to accept an offer in the range of €39 to €40 per share, as this “would represent an acceptable valuation.”
LGI’s offer is now open and shareholders will have until January 11, 2013 before the initial acceptance period closes.
LGI said its offer provided a 12.5% premium to Telenet’s closing price on September 19, a 15.2% premium compared to peer group Ziggo, Kabel Deutschland Holding (KDG) and Virgin Media.
WATCH VIDEO – Liberty Global’s Mike Fries talks in a video on the LGI website about the Telenet offer. Click here to go to the video directly.