More trouble for Tele2’s Versatel bid

1 Sep 2005

A group representing shareholders of the Dutch wireline operator Versatel are claiming that a takeover offer by Tele2 of Sweden is destined to fail unless the bid price is raised. The shareholder lobby group which calls itself TeleNee says support for its action “has grown to such an extent that Tele2’s offer for 95% of the shares has no chance of succeeding”. Tele2 said it wanted 95% of Versatel’s shares to be tendered before it would proceed with the deal. TeleNee is arguing that the Swedish firm’s offer of EUR2.20 per share is too low; Versatel shares closed at EUR2.23 on Wednesday.