Sunrise faces hit from Liberty Global fail

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As Liberty Global holds out hopes a deal can be revived, Sunrise Communications faces a hit of up to SFr125m (US$125m) from its failed bid to buy the US cable company’s Swiss unit.

Sunrise’s costs from the failed SFr6.3bn deal, halted after opposition from the Swiss telecom company’s largest shareholder, include a SFr50m break-up fee to Liberty Global, as well as SFr19m in underwriting fees and already-incurred integration costs of SFr24m.

Last month, Sunrise abandoned its takeover of Liberty’s UPC Switzerland business when German firm Freenet, which holds 25% of the Swiss telecoms firm, balked at concerns the move was too expensive. Freenet says that adding cable assets made little sense as the industry was transitioning to faster 5G mobile technology.

Liberty Global said late on 12 November that it was not completely writing off the transaction and held out hopes that a deal could be resurrected.

Liberty Global says in a statement: “We look forward to continuing our conversations with either the board or Freenet about a potential transaction that creates significant value for both sets of shareholders and Swiss consumers.”

 

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