Liberty talks Telenet takeover

Liberty Global has launched a €2bn (US$2.6bn) bid to buy up the remainder of Belgium’s Telenet Group cableco it doesn’t already own.

The US cable operator will offer €35 per share for the outstanding 49.6% of the business not currently under its control, making the total takeover worth €1.96bn.

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

Should the deal go ahead, Telenet will be delisted from the stock market. The company provides television, broadband and mobile phone services to its 2.15 million customers.

The Belgian company said it was informed of Liberty’s offer yesterday and that its board will now review the offer. Telenet added it was legally obliged to appoint independent experts to review Liberty’s offer.

Mike Fries, president and CEO of Liberty Global, said: “We believe this is the right time for Telenet to become a wholly-owned part of Liberty Global’s pan-European platform in its next stage of development, particularly in light of the competitive and regulatory outlook in Belgium.

“As a long-term, industrial player in European cable, this shows our commitment to the Belgian market. Telenet is one of our most successful operations and a core part of our growing pan-European platform.

“We remain very supportive of the existing management team and employees at Telenet, all of whom have contributed to the company’s success. We will continue our focus on investments and product innovation in Belgium.”

Liberty Global operates in 13 countries around the world, providing television, broadband internet and telephone services to 20 million customers. Alongside Telenet, its brands include UPC, Unitymedia, Kabel BW and VTR.

Liberty Global is also parent owner of Chellomedia, its content division, which yesterday acquired the remaining 50% of Cosmo TV Latin America from Hearst Corporation that it doesn’t already own. That deal followed another last month that saw the unit take over a string of MGM-owned networks around the world.