Despite the plan by Sunrise to reduce the size of the capital increase to finance the takeover, Freenet believes that the transaction leads "to value destruction for all existing Sunrise shareholders", and "regards the strategic rationale as fundamentally flawed".
Sunrise’s shareholders bear the execution risks of an all-cash transaction, while potential hypothetical synergies "are being paid away to Liberty Global in advance", said Freenet. The acquisition price is "inflated", noted the company in a statement, adding that Sunrise should continue to operate as a standalone firm in "one of the most attractive telecom markets".
Finally, Freenet's representatives continue to be disappointed about their exclusion from ongoing discussions on the deal at board level.
