No Sky-Voda­fone merger

Central Leader - - SCHOOL’S OUT - HAMISH MCNI­COL

Sky Tele­vi­sion and Voda­fone have dropped a pro­posed merger of the two com­pa­nies.

A stock ex­change an­nounce­ment from Sky on Mon­day said it and Voda­fone had de­cided to ter­mi­nate an agree­ment re­lat­ing to the pro­posed merger.

An ap­peal against the Com­merce Com­mis­sion’s de­ci­sion to de­cline the merger had also been dropped.

‘‘Sky Tele­vi­sion and Voda­fone New Zealand will con­tinue to work to­gether to strengthen our com­mer­cial re­la­tion­ship for the ben­e­fit of the cus­tomers and the share­hold­ers of our re­spec­tive or­gan­i­sa­tions,’’ Sky said.

In March, the com­pa­nies had filed an ap­peal against the com­pe­ti­tion watch­dog’s block­ing of the pro­posed merger to ‘‘pre­serve their op­tions’’ ahead of a le­gal dead­line.

It had been un­clear whether they in­tended to fol­low through, but in May the com­pa­nies said they would press ahead with the ap­peal.

Sky TV chief ex­ec­u­tive John Fel­let likened the prospect of an ap­peal to ‘‘root canal work’’ af­ter the com­pe­ti­tion watch­dog blocked the pro­posed merger of their busi­nesses in Fe­bru­ary.

Voda­fone’s Bri­tish-based par­ent would have ended up with $1.25 bil­lion in cash and a 51 per cent share in the merged busi­ness had the merger been ap­proved.

Sky shares have fallen by more than $1 over the past year, to trade at $3.39.

SUP­PLIED

Sky and Voda­fone say they will still strengthen their re­la­tion­ship.

Newspapers in English

Newspapers from New Zealand

© PressReader. All rights reserved.