Freenet's broadband division to attract interest from German peers |
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Fri, 24 Aug 2007 17:15
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LONDON (Thomson Financial) - Freenet AG's broadband division is likely to attract takeover interest from fellow Germans United Internet AG, Arcor and HanseNet Telekommunikation following the telecoms group's decision to pursue a break-up, sources say.A German-based lawyer, who specialises in telecoms, said: 'This is a clear sign for consolidation. Freenet wasn't big enough and couldn't survive as a reseller -- it is now much more important for companies to have their own networks.'A banker active in broadband deals expected further transactions in Europe, saying there is little rationale for so many players to invest in infrastructure. Moreover, consumer-focused companies are more likely to see break-ups than corporate-facing groups, which have more to gain from bundling services.Industry watchers expect European broadband consolidation to proceed on a domestic level and that there is little need for 7-10 players in each country.Freenet chief executive Eckhard Spoerr told Sueddeutsche Zeitung the group is in talks with potential buyers of its broadband and mobile operations.Research by investment bank Morgan Stanley, which has been hired by Freenet to find a buyer for the company, showed that a sale of individual units is more likely to succeed than a sale of the whole company, which had been Spoerr's preferred plan.tf.TFN-Europe_newsdesk@thomson.comcel/wjCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Drillisch lifts Freenet stake to 28.56 pct from 10.08 