DUBLIN, Ireland-Ireland’s Esat Telecom said it is in talks with third parties about a competing takeover bid to counter a $1.9 billion hostile takeover attempt by Norway’s Telenor AS. The potential bidders were not identified.
Telenor, Norway’s state-owned telecom operator, said last week it is increasing its hostile cash offer for Esat. The revision includes an increase in ordinary share capital of Esat to $85 for each Esat American Depository Share, up from $72, or $42.50 per Esat share, equivalent to about 42.1 percent Esat share.
The increased offer values the entire issued ordinary share capital of Esat at about $1.9 billion from the previous $1.6 billion. Telenor said it will approach shareholders directly.
Telenor announced it would pursue the East takeover bid alone, following the collapse of Telenor’s merger with Telia AB. The bid originally was launched earlier this month by Newtel Ireland, a subsidiary of Newtel AB. Telenor said Newtel AB, which was formed between Telenor and Telia during their proposed merger, is now 100-percent owned by Telenor. Newtel Ireland is being renamed Telenor Ireland AB.
“This increase shows that we mean business,” said Telenor Chief Executive Officer Tormod Hermansen. “We now want to bring matters rapidly to a close.”
Telenor and Esat already are partners in the Digifone Irish wireless phone business, each owning 49.5 percent of the venture.
In related news, Telenor said it reinstalled Tormod Hermansen as chief executive officer of Telenor beginning Jan. 1. He currently is CEO of Newtel AB. Peter Pay, who has been acting CEO of Telenor since April, will return to his former position as executive vice president.
