By Debbie Cai
Liberty Global (LBTYA, LBTYB), controlled by billionaire
telecommunications pioneer John Malone, said it has increased its
stake in Telenet Group Holding NV (TNET.BT, TLGHY) to about 58.4%,
as Mr. Malone continues an effort to consolidate control of the
Belgian cable-television operator.
Liberty Global last month made an official bid of 35 euros
($45.30) a share, or roughly $2.5 billion, for the Telenet shares
it didn't already own. Last week, two of Telenet's top five outside
investors said they wouldn't accept the offer, posing a challenge
for Liberty.
The U.S. company wants to increase its stake in part so it can
reap synergies from managing Telenet in a more coordinated fashion
with its other European holdings. According to Belgian
corporate-governance rules, if it can boost its stake into the 70%
to 75% range, Liberty Global's ability to dictate moves at Telenet
like mergers and share buybacks would increase dramatically.
Liberty Global previously held a stake of just over 50%.
The company said about 9.5 million ordinary shares and 3,000
warrants were tendered into the voluntary and conditional cash
offer launched by its subsidiary, Binan Investments B.V., on Dec.
18 for the outstanding shares and other securities giving access to
voting rights of Telenet.
Telenet recently had about 113.3 million shares outstanding,
according to FactSet.
"We remain committed to investing in growth opportunities for
Telenet, maintaining its position as a leading innovator in the
Belgian market, and delivering best-in-class services to its
customers," Liberty Global President and Chief Executive Mike Fries
said. "We believe that this is the right time for Telenet to be
more closely integrated within our pan-European platform and in an
environment where scale is paramount, we believe that closer
integration will benefit all Telenet stakeholders."
Class A shares closed of Liberty Global edged down three cents
to $66.74 after hours. The stock is up 57% over the past 12
months.
American depositary shares of Telenet closed at $35.77 on
Monday, and the stock is up 34% over the past 12 months.
Write to Debbie Cai at debbie.cai@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires