Sunrise Communications faces an uphill battle to complete its takeover of Liberty Global’s Swiss network after its largest shareholder said it would oppose a rights issue to fund the $6.3bn takeover.
The Swiss company, which has a market value of SFr3.3bn ($3.3bn), agreed to acquire its rival this week and said it expected to have completed the takeover by the third quarter.
However, the funding mechanism for the deal could prove a high hurdle for it to clear after Freenet, which owns almost a quarter of Sunrise’s shares, said it would not support a SFr4.1bn rights issue to pay for the deal and pay down some existing debt.
Full Content: Financial Times
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