US Liberty Media walks away from deal to acquire Belgian Telenet

telecommunications

US cable TV company Liberty Global Inc (NASDAQ:LBTYA) said it would not prolong its offer for Belgian takeover target Telenet Group Holding NV (EBR:TNET) after the expiration deadline set for today.

In an official announcement in Belgian business dailies De Tijd and L’Echo, the US firm said that it held 58.3% of Telenet’s shares and 58.4% of its voting rights after on Monday a further 9.49m shares and 3,000 warrants were tendered to its voluntary cash offer.

Liberty, which previously owned 50.2% in Telenet, launched on 18 December a EUR1.96bn (USD2.6bn), or EUR35.00 a share, offer for the rest of the stock. The bid, to be funded with cash on hand and borrowings, could result in Telenet being delisted.

Last week, the target released a trading update ahead of schedule, saying its revenues last year had increased 8.2% to EUR1.49bn, up from analysts’ average forecast of EUR1.48bn and the company’s expectation for 7% to 8% growth.

Liberty had previously questioned the target’s growth forecasts for the period between 2012 and 2018, saying it would not lift its bid.

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