Danish Telecom TDC Still Backs Private-equity Bid

LONDON (Dow Jones) -- Danish telecom TDC said Monday that it continues to recommend shareholders accept a $12 billion tender offer received last year from a consortium of private-equity investors, even after a major holder rejected the offer.

On Sunday, Danish pension fund ATP, which holds 5.5% of TDC, said it wouldn't accept the DKK382 a share, or DKK76 billion, offer from the Nordic Telephone Company, saying it's "not sufficiently attractive," AFX News reported.

TDC said ATP's rejection does not change its stance on recommending the offer to shareholders. The Nordic Telephone Company's view on the offer is also unchanged.

Nordic remains confident that all the conditions for the successful completion of the tender offer, which is excluding debt, can be met by the expiration of the offer period on Jan. 12, a spokesman said.

TDC operates fixed-line and mobile-phone networks in Denmark, Switzerland, Germany, and the United Kingdom. The company's shares were recently down 2.9% at DKr367 in Copenhagen.

The consortium offering to buy Denmark's largest phone company consists of Apax Partners, Kohlberg Kravis Roberts, Permira Advisers Ltd., Blackstone Group and Providence Equity Partners. It would be the world's biggest leveraged buyout since 1989.

However, one analyst said ATP's move could trigger a rethink from the potential new owners.

"Several observers believe that the (private equity) funds can now choose between canceling the acquisition or raising its offer," said analysts at Jyske Bank.

(END) Dow Jones Newswires "

Posted to the site on 9th January 2006