Liberty stands by Telenet offer

US cable operator Liberty Global is moving ahead with its original takeover attempt of Belgian cableco Telenet Group after disagreeing with an independent valuation of the company.

Liberty made a move to acquire the 49.6% of the business it doesn’t already own in September in a deal worth €1.96bn (US$2.5bn) or €35 per share.

Telenet, which provides television, broadband and mobile phone services to 2.15 million customers, was obligated by Belgian law to appoint independent experts to evaluate the offer.

The independent review carried out by financial advisory firm Lazard valued Telenet at between €37 and €42 a share but Liberty says it intends to proceed with the original offer, which it considers “highly attractive” for Telenet shareholders. It has, however, removed the 95% minimum acceptance condition from the offer.

In a statement Liberty said it has “serious reservations regarding the long-term business plan assumptions that were used in the valuation report prepared by Lazard” and that they form a “speculative plan that cannot be reasonably achieved or implemented.”

Telenet’s board of directors is preparing a response that argues it is worth more than Liberty’s offer, a statement from the company said.

Liberty has been the controlling shareholder in Telenet, owned through its subsidiary Binan Investments, since February 2007.