In a move that bodes ill for the acquisition plans of United Pan-Europe Communications, shareholders in Germany’s third largest cable TV group Primacom will not be voting today on their company’s agreeed takeover by UPEC.
The postponement was sanctioned by the boards of both companies after they failed to agree on the valuation of assets. It is also understood that the marriage failed to gain the green light from competition authorities in time for the vote. According to Primacom chief financial officer Paul Thomason: “[It is] not going to be easy [to complete the merger].”
UPEC, Europe's biggest cable operator by subscriber numbers, said the joint decision to postpone the vote reflected "significantly changed market conditions since the merger was announced on March 29".
The vote has been put back to October 31 at latest.
News source: Financial Times