Liberty Global surprises with $7.4 billion deal to buy Sunrise in latest telecoms consolidation

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Liberty Global surprises with $7.4 billion deal to buy Sunrise in latest telecoms consolidation
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Liberty Global plans to take over Switzerland's Sunrise Communications in a surprise $7.4 billion deal announced by the companies on Wednesday.

FILE PHOTO: Swiss telecoms company Sunrise's logo is seen at its headquarters in Opfikon, Switzerland February 6, 2019. REUTERS/Arnd Wiegmann

Sunrise shares rose by more than a quarter to just below the offer price in early trade on Wednesday. “It’s a fair valuation,” Freenet CEO Christoph Vilanek told Reuters. “We believe that a merger on sensible terms makes sense.” “I’ve always said the market requires rationalisation and we remain opportunistic about strategic developments there,” Liberty Global Chief Executive Mike Fries told reporters. “The industrial logic of this deal is undeniable.”

The biggest deal, the sale of its cable networks in Germany and central Europe to Vodafone, netted $22 billion last year.

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