Tele2 intends to make a recommended cash offer at EUR 2.20 per share for Versatel Telecom International and a simultaneous cash offer for all its outstanding convertible notes. Tele2 has agreed to sell Versatel's German operations to venture capital group Apax Partners for EUR 565 million after completing the bid for Versatel. The supervisory board and executive board of Versatel unanimously support the intended offers and recommend these to the shareholders and noteholders of Versatel. The proposed offer price represents a 14 percent premium over the closing price of EUR 1.93 on July 15, 2005 and a 47 percent premium over the closing price of EUR 1.50 on April 28, 2005, the day prior to the first reports on discussions with Belgacom.
