Versatel faces lawsuit

1 Dec 2005

A group representing minority shareholders of Netherlands-based telco Versatel are considering legal action against the company following its takeover by Swedish firm Tele2. The group, which includes investors such as Amber Capital Management, Centaurus Capital and Mellon Alternative Strategies, is unhappy that Tele2 has replaced the entire board of Versatel with its own representatives. Minority shareholders are asking for at least two representatives with no connection to Tele2 to be added to the board. Tele2 acquired its 74% stake in Versatel for EUR1.34 billion earlier this year, having failed in its initial bid to buy up more than 95% of the company.

Netherlands, Tele2 (a brand of T-Mobile Netherlands)