Story
Gamma Communications Shares Decline as Waterland Abandons Rival Takeover Bid
Summary
Shares in the UK telecoms provider fell after Dutch private equity firm Waterland stated it will not make a counter-offer, clearing the path for a previously agreed £1.02 billion acquisition by Epiris.
Shares in Gamma Communications (LSE:GAMA) fell more than 2% on Thursday after Dutch private equity firm Waterland announced it would not make a rival offer for the British telecommunications company. The decision removes the prospect of a bidding war and clears the way for a previously agreed takeover by private equity firm Epiris to proceed.
Waterland Ends Pursuit
Waterland confirmed it does not intend to make an offer for Gamma, ending weeks of speculation about a potential counter-bid. The announcement came ahead of an October 13 deadline set by the UK's Takeover Panel, by which Waterland was required to either formalize an offer or walk away.
The Dutch firm had previously explored a joint bid with UK telecoms provider Giacom Group. After that cooperation ended on September 11, Waterland had been considering a standalone offer, according to market reports.
AdPath Cleared for Epiris Deal
With no competing bids expected, the focus now shifts to the existing £1.02 billion acquisition offer from Epiris. Gamma's shareholders are scheduled to vote on this agreed-upon deal on October 20.
The decline in Gamma's share price reflects the market's reaction to the elimination of a potential bidding war, which could have driven the final acquisition price higher. Investors who may have been holding the stock in anticipation of a superior offer are now adjusting their positions based on the certainty of the Epiris bid.
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