DUBLIN, Ireland-Esat Telecom continued its defense against a hostile takeover attempt by Telenor Ireland AB. The company posted its second defense document on its Web site, urging shareholders to reject the offer.
“The Esat board, having considered Telenor’s new offer of $85 per ADS (American Depository Share) and being so advised by Chase Manhattan, Credit Suisse First Boston, Donaldson Lufkin & Jenrette International and Davy Corporate Finance, unanimously recommends that Esat shareholders reject Telenor’s new offer,” the company said in a statement.
Esat directors, who hold 13.6 percent of the company’s issued share capital, plan to reject the new offer, the statement said.
Telenor is pursuing the Esat takeover bid alone, following the collapse of Telenor’s merger with Telia AB. The bid originally was launched in December by a subsidiary of the merged companies.
The increased Telenor offer values the entire issued ordinary share capital of Esat at about $1.9 billion, compared with the previous bid of $1.6 billion.
