Swiss telecommunications company Sunrise has confirmed that it is in discussions with Liberty Global regarding a possible acquisition of its Swiss cable subsidiary UPC Schweiz.
“Sunrise Communications Group notes recent media and market speculation regarding a potential transaction with Swiss cable operator UPC Schweiz, a wholly-owned subsidiary of Liberty Global,” the company said in a statement.
“Sunrise will only pursue a transaction that is strategically compelling and demonstrably value creative for its shareholders. In the event of a transaction, Sunrise is committed to a prudent capital structure and will retain its existing progressive shareholder distribution policy. There is no certainty that any transaction will be agreed, nor as to the terms or timing of any transaction. A further announcement will be made if and when appropriate.”
The statement follows a report by the Financial Times regarding takeover negotiations between Sunrise and Liberty Global with reference to people with direct knowledge of the situation.
Liberty Global has been favourable towards consolidation in the Swiss market with its total of four full service providers, and discussions with Sunrise regarding a combination of their assets in Switzerland have been going on for a while.
Exiting Switzerland would be in line with Liberty Global’s recent moves to sell its cable subsidiaries in Austria, in Germany and Eastern European countries and its DTH satellite operations in Central and Eastern Europe.