ZURICH: Sunrise Communications' proposed takeover of Liberty Global's Swiss UPC business faces a revolt with at least two big investors joining top shareholder Freenet in opposing the 6.3 billion Swiss franc deal, sources said.
"The deal has to be significantly restructured," one top-10 Sunrise shareholder said on condition of anonymity."We would prefer it did not take place at all." Such acquisitions rarely produce the envisioned synergies and often cost more than planned, this shareholder said."At the moment we assume the deal in its current form has no chance."
"Is this transaction necessary at all? We are skeptical," he said, suggesting Sunrise was better off as a standalone entity that should focus on rolling out new 5G technology that could one day make cable obsolete. Sunrise finance chief Andre Krause told Reuters he was"very sure" of winning a majority for the transaction with or without Freenet's backing. Sunrise would meet its top 30 to 50 shareholders over the next three weeks to sound out whether it needed to change the financing plans for the deal, he added.
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