UPC Says IPO 20-Times Subscribed, Delays Pricing to Friday
Bloomberg News
February 11, 1999, 12:40 a.m. PT
UPC Says IPO 20-Times Subscribed, Delays Pricing to Friday
London, Feb. 11 (Bloomberg) -- United Pan-Europe
Communications NV, the Netherlands' largest cable company, said
its initial stock offering, completed yesterday, was 20 times
subscribed. It delayed pricing the shares until Friday, one day
later than planned, because of a paperwork problem.
Amsterdam-based UPC, which aims to raise as much as $1.25
billion through a sale of 40 million common shares and American
depositary shares, said the shares will be priced before the
Dutch market opens tomorrow and will immediately begin trading.
The company will use the money to upgrade its broadband
cable network, which passes six million homes in 10 European
countries and Israel. Investor interest in European cable
networks has surged as companies like UPC offer television and
telephone service as well as high-speed Internet access.
Cary Martin, a UPC spokesman, said the company delayed
setting the price on the shares because of ''technical
problems'' in filing the appropriate paperwork in the U.S.
He said the offering, expected to be completed in a price
range between 27 euros and 29 euros ($30-$33) was 20 times
subscribed. That price range was raised Monday from 24 euros to
27 euros.
Denver-based United International Holdings Inc. will remain
UPC's controlling shareholder with 62 percent. Microsoft Corp.,
the world's No. 1 software maker, plans to invest $300 million
in UPC shares, while Discount Investment Corp., an Israeli
holding company, is buying $45 million worth of shares.
The shares will be listed on the Amsterdam and Nasdaq stock
exchanges. The sale was managed by Goldman, Sachs & Co. and
Morgan Stanley Dean Witter. |
