Updated from 7:56 a.m. EDT
, Europe's largest high-speed telecommunications company, soared 17% Monday after the company said it will buy an array of assets from
in a complicated cash and stock deal that makes Liberty its largest shareholder.
Shares in UnitedGlobalCom settled up 7 3/16 at 50 3/4 after reaching a session high of 54 15/16. Liberty was slightly lower at 24 3/16, down 9/16, or 2%.
The agreement calls for United to acquire some of Liberty's international broadband distribution and programming assets for $200 million in cash and 75.3 million shares of United's class B common stock. These shares represent a 38% economic and a 72% voting interest in the company.
Liberty, based in Englewood, Colo., will have the right to appoint four out of 12 representatives to United's board.
Denver-based United will get a panoply of Liberty assets, including a 25 percent indirect economic interest in
, the U.K.'s No. 2 broadband provider. In a bit of financial gymnastics, this stake was immediately sold by United to its Dutch-based cable subsidiary,
United Pan-Europe Communications
, for 128.2 million UPC shares, worth about $3.54 billion based on Friday's closing price.
United will also acquire Liberty's Latin American broadband interests, including a 28% stake in
in Argentina; 49% of
of Puerto Rico; 41% of
, a wireless broadband service provider in Mexico; and 43% of
Digital Latin America
The companies expect the deal to close in the fourth quarter.