Sunrise could change funding from UPC acquisition

The Swiss telecom group Sunrise

The Sunrise Board of Directors intends to change the financing of the transaction in order to appease the German major shareholder.

(Photo: Reuters)

Zurich The Swiss telecom company Sunrise increases its estimate for the synergies resulting from the planned multi-billion euro acquisition of cable operator UPC Switzerland. Sunrise expects synergies of 280 million Swiss francs instead of 235 million Swiss francs, as the company announced on Thursday.

To the concerns of the German major shareholder freenet In addition, the Sunrise Board of Directors signaled the willingness to change the financing of the transaction.

For example, the volume of the capital increase could be lower than originally planned. Instead, the debt could be increased. Sunrise's board of directors excludes freenet representatives from future consultations on the UPC transaction.

Freenet had declared last week that it would refuse to approve the planned CHF 4.1 billion capital increase to finance the acquisition. Freenet holds 24.5 percent of Sunrise.

More: Read how Telekom benefits from the US market

Sunrise (t) Telecom (t) Switzerland (t) UPC (t) Cable network (t) Takeover (s) Freenet (t) Financing (t) Capital (m) Mergers & Acquisitions M & A (t) Capital Increase (t) telecommunications industry


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