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Malone will take you out on the cheap like he did with the Schneider family in the early 2000s.

 

Could you explain this part please? I'm not familiar with the Schneider story and I'm trying to see what Malone's options are for Belgium.

 

Vodafone is an obvious acquirer in Belgium. Sell Telenet and the Ziggo JV at the same time and maybe you avoid scrutiny by the national regulators again and the deal gets approved.

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Malone will take you out on the cheap like he did with the Schneider family in the early 2000s.

 

Could you explain this part please? I'm not familiar with the Schneider story and I'm trying to see what Malone's options are for Belgium.

 

Vodafone is an obvious acquirer in Belgium. Sell Telenet and the Ziggo JV at the same time and maybe you avoid scrutiny by the national regulators again and the deal gets approved.

 

Vodafone doesn’t have the cash to pay for it. Elliot would have to force Vodafone to sell or partially sell its towers. I don’t see the benefits for Vodafone to buy those assets except there are synergies in owning multinational neighboring telcos that Liberty can’t realize. Pretty unlikely.

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Prime Minister Boris Johnson mentioned his desire to "level up" full fiber broadband and to do so "not just in London" within the first 5 minutes of his very first speech!

 

(around 4:05)

 

I wonder what's going on behind closed doors between politicians and connectivity companies. It seems like Virgin believes they have identified a way to play this political agenda to their advantage. Given the track record of Project Lightning, I have to say I would have much rather taken a bigger buyback. Once again Mike Fries lied through his teeth: he promised he had no plans whatsoever waiting in the pipeline besides share buybacks then turned around the very week the Vodafone transaction got approved.

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https://finance.yahoo.com/m/21b66dc0-9d56-328b-a74e-eb8d6ff54202/virgin-media-lined-up-for.html

 

Let's hope they dont blow the whole cash pile doubling down on Lightning in rural regions!!

 

Do I understand that they want to do a joint venture so that they will have infrastructure funds providing part of the capital investment so they are in effect using 'other people's money'?

 

The low british pound might also have something to do with it as it's cheaper obviously when the currency is lower.

 

 

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The huge Vodafone transaction has closed, replenishing Mikey French Fries coffers. Surely we'll hear something about what he plans on doing with the cash on the upcoming earnings call.

 

https://www.libertyglobal.com/wp-content/uploads/2019/07/Liberty-Global-Completes-Sale-of-Assets-to-Vodafone.pdf

 

Also, what's latest on the Switzerland transaction timeline?

 

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I think the Swiss regulator is reviewing and expected to clear transaction in October. Then 2-3 weeks to call the Sunrise EGM to vote on deal. They need 50%+ shareholder approval. Freenet's vote is the big question mark I think as they have 25% of the company.

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I think the Swiss regulator is reviewing and expected to clear transaction in October. Then 2-3 weeks to call the Sunrise EGM to vote on deal. They need 50%+ shareholder approval. Freenet's vote is the big question mark I think as they have 25% of the company.

 

Freenet is against the transaction: the price is too high and most of the synergies acrue to Liberty Global. Here is a German article about Freenets opinion on the deal: https://www.wallstreet-online.de/nachricht/11440878-machtkampf-sunrise-freenet-ceo-christoph-vilanek-vorstandswoche-gespraech/all

 

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I'm not sure I understand the article.

They needed two thirds but fell short, now they're going to vote again but this time fifty percent is enough... And then the part about Liberty buying in right before selling out, but somehow that would give them LESS power against the Germans?? Super confusing.

 

The vote on "capital increase" means emitting new stock, right?

If it fails, management could maybe go ahead anyway using only debt.

Swiss interest rates are in the negative after all.

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In April, Freenet blocked a proposal on Sunrise’s annual meeting to increase the share capital of the company. This was a special resolution that required two thirds of the votes to get approval, and Sunrise’s 24.5% were enough to stop it due to turnout of only 62% of shareholders. However the actual UPC merger as well as the share placement only requires a simple majority to pass. The special resolution received 59.3% support so it would’ve passed if only a simple majority was required. Both LGI’s and Sunrise’s management team seem confident that the deal would get approved even without Freenet’s support, both suggesting that turnout tends to be high at Swiss EGMs, with the vast majority voting in line with board recommendations. 

 

 

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In April, Freenet blocked a proposal on Sunrise’s annual meeting to increase the share capital of the company. This was a special resolution that required two thirds of the votes to get approval, and Sunrise’s 24.5% were enough to stop it due to turnout of only 62% of shareholders. However the actual UPC merger as well as the share placement only requires a simple majority to pass. The special resolution received 59.3% support so it would’ve passed if only a simple majority was required. Both LGI’s and Sunrise’s management team seem confident that the deal would get approved even without Freenet’s support, both suggesting that turnout tends to be high at Swiss EGMs, with the vast majority voting in line with board recommendations.

 

 

Thanks!

<3

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Major tender offer announced

 

""Today we are announcing the first step towards allocating our capital in a value-accretive manner with the intention to launch cash tender offers of up to $2.5 billion consisting of up to $625 million Class A ordinary shares at an expected price range of $25.25 to $29.00 and up to $1.875 billion Class C ordinary shares at an expected price range of $24.75 to $28.50. We expect to launch the tender offers around August 12. We are also focused on enhancing the strategic and financial value of our core operating businesses, particularly Virgin Media (VMED) which remains the most advanced broadband and fixed/mobile provider in the U.K. with substantial opportunities for expansion and growth. With 500 Mbps already available to nearly 15 million homes and 1 Gbps speeds just around the corner, Virgin Media is miles ahead of other U.K. operators in providing ultrafast broadband, both today and into the future.”"

 

 

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  • 2 weeks later...

In April, Freenet blocked a proposal on Sunrise’s annual meeting to increase the share capital of the company. This was a special resolution that required two thirds of the votes to get approval, and Sunrise’s 24.5% were enough to stop it due to turnout of only 62% of shareholders. However the actual UPC merger as well as the share placement only requires a simple majority to pass. The special resolution received 59.3% support so it would’ve passed if only a simple majority was required. Both LGI’s and Sunrise’s management team seem confident that the deal would get approved even without Freenet’s support, both suggesting that turnout tends to be high at Swiss EGMs, with the vast majority voting in line with board recommendations.

 

The war of words between Sunrise and Freenet continues to escalate.

 

https://www.digitaltveurope.com/2019/08/22/sunrise-at-war-with-freenet-over-liberty-global-deal/

 

levcap, if you have any other thoughts I (and probably many others here) would be happy to hear them. You seem very well informed.

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Seems Liberty thinks Freenet has contaiminated Sunrise's mind by claiming UPC is not as valuable like a material adverse clause breakup?

 

"DENVER, Colorado--(BUSINESS WIRE)-- Liberty Global (LBTYA) notes the recent statements by Freenet AG and Sunrise Communications with respect to the proposed acquisition of Liberty’s Swiss operation by Sunrise, announced on February 27, 2019.

 

Liberty Global is fully committed to completing the transaction as agreed. The company has not had any discussions regarding amending the binding transaction terms, and has no intention or interest in doing so. We are pleased with the continued turnaround by UPC Switzerland, as demonstrated in our recently published earnings announcement."

 

The previous post seems that Sunrise wants to kick out some Freenet directors on the board and has chastised them for their trouble making. Can Sunrise do the deal without Freenet support?

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As I understand it they have also excluded the Freenet directors from voting on the deal as being conflicted. It all comes down to the shareholder vote.

 

Everything I've seen suggests the price is not exorbitant and the concern has now switched from price to manner of payment (Freenet wants less equity raised and more debt)

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  • 2 weeks later...
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Maybe he's doing it for tax reasons? Don't really like capital being deployed there, but at these price levels it's not meaningful for LBYTA.

 

 

https://seekingalpha.com/news/3497964-malone-trims-lions-gate-stake-4_98-percent

 

"The move coincides with Liberty Global (NASDAQ:LBTYA) raising its stake to 4.9%."

 

Hold on. So Malone was selling LGF.A/B while LBTYA was buying LGF.A/B?

 

Fun...

 

 

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