Denmark's TDC Rings Up Gains on Bid Approach

The telecom calls the offer, which reportedly came from Apollo, financially inadequate and incomplete.
By Kate Norton ,

Denmark's TDC said on July 8 it had received and rejected an unsolicited takeover approach from an unnamed bidder, sending shares of the phone carrier soaring almost 11%.

"TDC confirms that it received a highly preliminary approach for a potential acquisition of control of TDC," the carrier. "TDC reviewed the approach and concluded that it was financially inadequate, incomplete and not in the best interest of shareholders. Consequently, TDC has decided not to pursue it any further."

The announcement follows reports in the Danish newspaper Boersen, citing unnamed sources, that the carrier had been approached by U.S. private-equity firm Apollo Global Management (APO) - Get Report

TDC shares surged 3.44 Danish kroner (51 cents), or 10.6%, to Dkr3.60 in Copenhagen trading, valuing the Danish carrier at Dkr29.22 billion($4.3 billion). The operator's shares have fallen almost 26% over the past year.

The Danish company is undertaking measures to stave off competition from Nordic rivals Telenor and Telia. Last month, it sold its Swedish arm to Tele2.

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