The takeover of UPC Switzerland by Sunrise is still opposed by shareholders who own at least 30 percent of the voting rights, a Reuters survey shows. The investors would vote against the capital increase to provide the financial means to support the transaction worth CHF 6.3 billion.
"We believe the transaction is on the brink," said one top ten investor to Reuters. Freenet, the largest shareholder in Sunrise with 24.5 percent, recently reaffirmed its decision to vote against the proposed capital increase at the extraordinary general meeting. Another investor complained that the transaction price is too high.
To win the backing of the shareholders, Sunrise has reduced the size of the capital increase to CHF 2.8 billion from CHF 4.1 billion. It needs a simple majority to back the increase at the general meeting.
Opponents of the rights issue hope to block the deal with less than half of the voting rights, given that turnout at shareholder meetings is typically well below 100 percent, the report added.
