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Danish operator confirms preliminary approach but describes it as ‘financially inadequate’.
TDC on Friday revealed that it has rejected a takeover bid from a potential suitor.
In a short statement, the Danish operator said it had received a preliminary approach, but after review had "concluded that it was financially inadequate, incomplete and not in the best interest of shareholders."
As a result, it will not pursue the matter further, it said.
The announcement came after a report in Danish business title Børsen claimed TDC’s days as a listed company could be drawing to a close following an approach from a large investor.
TDC did not name the bidder, but the appearance of the word ‘Apollo’ in the title of a document attached to its online statement has given rise to speculation that U.S. private equity firm Apollo Global Management could be behind the takeover offer.
As it stands, TDC is listed in Copenhagen and claimed around 42,000 shareholders at the end of last year, according to its latest annual report. Its biggest shareholders at the same date were The Capital Group Companies with a 14.1% stake, Massachusetts Financial Services Company USA with 10.1%, and Thornburg Investment Management with 5%.
The telco was acquired by a five-member private equity consortium under the Nordic Telephone Company umbrella in early 2006 for around €12 billion, a record figure for the European telecoms sector at the time.
