28th Jul 2020 09:54
(Alliance News) - TalkTalk Telecom Group PLC rejected a takeover bid from major investor Toscafund Asset Management in 2019, Sky News reported late Monday.
The 135 pence a share bid would have valued the home phone and broadband provider at GBP1.55 billion, considerably more than its current market capitalisation of GBP867.2 million.
The stock was trading 2.3% higher on the day in London on Tuesday at 75.60p each, though it is down 35% from 116.10p since the year began.
The offer to take TalkTalk private was rejected by the board - led by Founder & Executive Chair Charles Dunstone - on the basis that it failed to provide sufficient value for investors, Sky reported citing City sources.
"Toscafund continues to evaluate strategic options for all the companies within its portfolio, particularly those where the London stock market fails to correctly recognise their prospects and strategic optionality, as is clearly the case at TalkTalk," a spokesperson for Toscafund told Sky.
https://news.sky.com/story/talktalk-rejected-135p-a-share-bid-from-major-investor-toscafund-12037466
Toscafund currently is the second largest shareholder in TalkTalk behind Dunstone, with a 28% stake to Dunstone's 30%, according to Morningstar.
By Ife Taiwo; [email protected]
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