Takeover Panel undertaking auction to resolve KCOM bid stalemate

5 Jul 2019

An auction is to be conducted by the UK’s Takeover Panel after the two prospective bidders for Hull-based KCOM failed to submit final offers for the telco.

As previously reported by CommsUpdate, in April 2019 UK-based pension fund Universities Superannuation Scheme Limited (USSL) announced that its Humber Bidco subsidiary had offered to acquire all shares in KCOM for a total consideration of GBP504 million (USD634 million). Then, in June KCOM’s board said it had withdrawn its recommendation for the takeover offer made by Humber, following a new, higher bid of GBP563 million from MEIF 6 Fibre Limited, a company backed by Macquarie Group.

Now, with neither of the bidders having confirmed their respective offers were final, the Takeover Panel has said that ‘in order to provide an orderly framework for the resolution of this competitive situation, and in the absence of any alternative auction procedure having been agreed between the parties’, it will oversee an auction which will get underway on 7 July.

United Kingdom, KCOM