Uniper shareholders bet on Fortum takeover in 12+ months

09 February 2018 - 06:37 pm UTC

Author(s): by Swetha Gopinath and William Mace@William Mace
Finnish energy company Fortum [HEL:FORTUM] , which has amassed a 47% stake in peer Uniper [ETR:UN01] through a tender offer, could wait before attempting to gain a large stake, said two Uniper shareholders.
Fortum is expected to come up with a better offer in 12 months, said Thomas Deser, a fund manager at Union Investment who has met with Fortum management. Deser did not disclose the date of his last meeting with Fortum. Union Investment holds about 1% of Uniper.
The sentiment comes as Fortum’s stake acquisition has stoked speculation that the acquirer could seek an agreement with other shareholders to gain control over Uniper in the short term. Elliott Management and other funds have added recent positions in Uniper, perhaps on the probability that Fortum would eventually want to take control of the entire company, a German M&A lawyer noted.
The wider market was betting on Fortum’s need to buy more shares, particularly to achieve the domination agreement, which hedge funds such as Elliott have become adept at blocking in lieu of a hiked compensation payment through the DPLTA process, the lawyer said.
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