Belgacom set to buy Telindusas France Telecom bows out
6 January 2006
BRUSSELS – Belgacom is set to buy Telindus for EUR 594 million after its sole competitor for the Belgian maker of telecommunications-network equipment, France Telecom, abandoned its rival bid.
France Telecom, Europe’s second- biggest phone company, had made a “friendly tender offer” of EUR 15.80 a share last month, but as the Friday deadline for final bids neared, the telecoms giant said it would not raise the offer.
“France Telecom has decided not to increase its initial bid and to withdraw its offer as the strategic and financial criteria of France Telecom’s industrial project for the acquisition of Telindus are no longer met,” a statement said.
Belgacom, Belgium’s state-controlled telephone company, boosted its own offer for Telindus in response, to EUR 16.60 a share, after its first bid of EUR 13.50 was turned down.
Telindus, based in Heverlee, designs, installs and manages networks. It has 2,600 employees and in 2004 it made a loss of EUR 3 million on revenue of EUR 532.1 million.
Belgacom has promised to “keep and actively promote the Telindus brand name for a period of at least five years from the completion of the offer.”
[Copyright Expatica News 2006]
Subject: Belgian news