Freenet threatens to derail $6.4 billion Sunrise-UPC deal

FRANKFURT: German telecoms group Freenet fired off a salvo of demands on Friday to cut the price and amend the terms of Sunrise Communication’s proposed 6.3 billion Swiss franc ($6.4 billion) takeover of Liberty Global’s Swiss unit UPC.

The broadside from Sunrise’s largest shareholder raises the stakes in a poker game that began in April, when Freenet blocked Sunrise’s plans to authorise fresh capital to help pay for the agreed all-cash deal.

“This transaction is very unfavourable towards existing shareholders,” CEO Christoph Vilanek told Reuters, as Freenet said the sale price should be lowered and risks reallocated that were borne disproportionately by existing shareholders.