Liberty Cuts Price For UnitedGlobalCom
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Liberty Media Group, the cable-television company run by John Malone, cut the price it will pay for UnitedGlobalCom Inc. shares by as much as 37% as the companies seek to form the largest cable TV provider.
This is the second time the companies have changed terms of the merger, which was valued at $4.02 billion when first announced June 26. Since then, UnitedGlobalCom shares have fallen 73%. Bondholders rejected original terms of the agreement, leading to a February revision.
Investors have become concerned that UnitedGlobalCom and its money-losing United Pan-Europe Communications, Europe’s second-largest cable provider, may not be able to raise additional funds to upgrade their cable systems.
The accord gives United and UPC $1.4 billion, which will be used to upgrade their networks for digital TV and Internet service.
Shares of Denver-based UnitedGlobal fell 63 cents to $13.20 on Nasdaq, while shares of Englewood, Colo.-based Liberty fell 19 cents to $18.31 on the NYSE.
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