Sunrise block impacts parent's IPO plans
A block on the merger of Sunrise with Orange in Switzerland could stall an IPO planned by Sunrise’s parent TDC.
TDC was expected to conduct an IPO later this year following a strategic review of its operations, but sources now say that will be delayed or even cancelled entirely, according to the WSJ.
The Swiss merger would have provided TDC around €1.5 billion from Orange parent France Telecom, which was a key element in moving the IPO forward.
Meetings with leading investment banks to discuss the agenda for the IPO – scheduled to take place this week – have now been cancelled, WSJ reported.
However, TDC chairman Vagn Sorensen said the deal could still proceed, if TDC refloats on the bourse. “The strategic analysis continues,” he told Reuters.
ComCo, the Swiss competition commission, blocked the merger of Orange and Sunrise last week, claiming the new operator would hold too much sway in the market, which would result in a raw deal for consumers.
Thomas Sieber, boss of Orange Switzerland, has vowed to pursue the deal, telling Swiss weekly SonntagsZeitung the carrier’s had committed to a fair pricing policy for the merged company, and that he would fight the decision in court if necessary.