FRANKFURT (Thomson Financial) - United Internet has strengthened its position in the German telecoms market prior to possible consolidation moves, via stakebuilding in wireless services company Drillisch AG and phone operator Versatel.
The German internet service provider said overnight that it raised its stake in Versatel to 20.05 pct, buying up a parcel equivalent to 0.55 pct of the German telecommunications operator's capital, and may buy additional shares.
The transaction further fuelled takeover speculation surrounding the telecoms provider, analysts said, after Berenberg Bank had raised its Versatel stake the previous day to 15.05 pct from 10.73 pct.
Analysts said that stakebuild was on behalf of a third party, also citing Telefonica SA as a possible bidder.
Also on Wednesday, United Internet bought 9.68 pct, or 5.15 mln shares, or 5.15 mln shares, in Drillish under the latter's capital increase.
Both companies late yesterday consolidated their holdings in a third rival, Freenet.
The Freenet stake held by Drillish/United Internet venture MSP now stands at 10.1 pct compared with the previous 6.1 pct, they said overnight.
Drillisch and United Internet said MSP remains open to raising its Freenet stake further at some point, though it currently has no plans to exercise an option to purchase a further 18.49 pct of the company from investment fund Vatas.
United Internet last week terminated talks for a strategic cooperation with Freenet, which it had planned to buy jointly with Drillisch.
Meanwhile, Freenet is in exclusive talks to sell its mobile phone service provider business to Drillisch, which also still aims to buy the company's wireless business. tf.TFN-Europe_newsdesk@thomson.com jms/jms COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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