United Internet seeks court injunction to block Freenet purchase of Debitel

8 May 2008

One of German multi-service operator (MSO) Freenet’s largest shareholders, ISP United Internet, said it has asked a German court to issue an injunction preventing Freenet from launching a 32 million share rights issue to finance the acquisition of mobile reseller Debitel, according to Handelsblatt magazine. ‘We have filed a temporary restraining order to stop the issuance of new shares,’ United Internet chief executive Ralph Dommermuth said, adding, ’We want to stop the Debitel deal in the interest of all Freenet shareholders.’ United Internet, which together with MVNO Drillisch holds 25.24% in Freenet, was opposed to the Debitel deal, as it wanted to acquire Freenet instead. Freenet finalised an agreement to acquire Debitel from private equity group Permira last month, for EUR1.6 billion (USD2.5 billion) including debt. The sale requires regulatory approval before it can go through.

Germany, debitel, freenet, United Internet (1&1)