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Fidelity wants Colt in $2.73 billion deal, Colt wants more

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Staff writer |
Colt Group SA
Possible acquisition   The offer for Colt Group was 190 pence per share

Fidelity, the largest shareholder of telecoms provider Colt Group SA, offered to buy out minority shareholders in an all-cash transaction that values Colt at about 1.72 billion pounds ($2.73 billion).

Independent directors of Colt said the offer undervalued the company and a sale to a third party could potentially achieve a significantly higher offer. The offer was 190 pence per share, which represents a 21.3 percent premium to Colt's Thursday closing price.

"The independent directors believe that the financial terms of the offer may be considered by some shareholders to be acceptable in the circumstances, and accordingly make no recommendation to shareholders whether or not to accept the offer," Colt said.

Fidelity, which owns about 62.4 percent of Colt, said it would not increase the offer as it "fully and fairly" valued the company and reflected the anticipated plans of the management.

Fidelity said it had received irrevocable undertakings to accept the offer from Ruffer and Standard Life Investments, who together hold about 23.4 percent of the stake held by independent Colt shareholders.


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