Dutch private equity firm Waterland has ended its agreement to act in concert with UK telecoms provider Giacom in relation to a potential takeover of Gamma Communications, while leaving open the possibility of pursuing its own bid for the company, according to a report by Reuters.
Waterland said it was no longer acting in concert with Giacom but would continue to assess its interest in Gamma. The firm cautioned, however, that there was no certainty that it would proceed with a formal offer.
The move comes after Gamma agreed earlier this month to a 1,120 pence-per-share takeover proposal from private equity firm Epiris, valuing the UK telecommunications company at approximately £1.08bn ($1.46bn).
Gamma has attracted interest from a number of buyout firms during an extended sale process. Oakley Capital and Providence Equity Partners were among those to pursue the company before withdrawing their approaches in June.
Waterland and Giacom had emerged as potential alternative bidders in August, when Gamma disclosed that the two companies were acting in concert over a possible transaction. Under the arrangement, Giacom was considering acquiring certain business units from Gamma as part of a wider deal.
The latest development follows reports that Waterland could be preparing an offer worth more than Epiris’ agreed bid. Such a move would potentially reopen a takeover contest that appeared to have been resolved when Gamma accepted Epiris’ proposal.
Gamma shares were trading at 1,141 pence on 11 September, around 2% above Epiris’ offer price, reflecting expectations that a competing proposal could still emerge.
