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Approach for TDC could scupper deal with MTG
Posted on Monday, 12 February 2018 14:05
A twist in the takeover of TDC has emerged today as a suitor proposed an acquisition that could prompt the Danish telecommunications giant to withdraw its recommendation to combine with MTG's Nordic Entertainment and Studios businesses.

The statement released this morning merely said an interested buyer has approached the former state monopoly, though “there can be no certainty that the current discussions will lead to the potential bidder making an offer”.

However, if an offer is made, then the board of directors intends to withdraw the recommendation for the poorly received USD 2.50 billion acquisition of the entertainment and studio units of MTG.

The announcement left the media outlets all aflutter on speculation of just what company has upset the apple cart, after all, TDC summarily rejected a USD 6.00 billion bid from a Macquarie-led consortium just last week.

While the “potential bidder” was not named in the statement, it has not stopped analysts from suggesting a rival telecoms operator like Telia of Sweden may have stepped forward.

Financial details were not disclosed either, though Morten Imsgard of Sydbank told Reuters he expects TDC’s board would only accept a bid that tops DKK 50.00 apiece (USD 8.23).

Shares in the group were up 6.5 per cent by 13:18 local time today at DKK 46.45, just shy of the reported DKK 47.00 apiece offer tabled by the Macquarie-led consortium.

Alm Brand Markets Michael Friis Jorgensen told Reuters that investors are reacting positively to the fact the threat of a merger with MTG – which could have blocked a takeover of TDC – has now been removed.

Despite the stock market boost – to a market capitalisation of DKK 37.72 billion at the time of writing – the deal would still be worth less than when a consortium offered to acquire the group in 2005.

Apax Partners, Blackstone Group and Permira tabled DKK 76.00 billion in what was Europe’s biggest leveraged buyout at the time, according to Zephyr, the M&A database published by Bureau van Dijk.

© Zephus Ltd