Entering text into the input field will update the search result below

Cogeco companies reaffirm rejection of Altice USA/Rogers bid (updated)

Sep. 16, 2020 4:16 PM ETBy: Jason Aycock, SA News Editor2 Comments
  • Cogeco (OTC:CGECF) and Cogeco Communications (OTCPK:CGEAF) have sent a letter reaffirming their rejection of the buyout proposal from Altice USA (ATUS) and Rogers Communications (RCI).
  • "From the outset, you have engaged in bad faith tactics, some of which created confusion in the market," the Cogeco companies write.
  • The support of Cogeco's controlling Audet family is necessary to complete a deal, they say; "We assume that you know this because you each run a family-controlled company." But they say that Altice USA and Rogers publicly announced their proposal before the open on Sept. 2 without having acknowledged that the Audets rejected the proposal the evening before. "We can only surmise that this was done with a view to misleading investors and increasing the stock price in an attempt to put pressure on the family to sell."
  • Cogeco says it's confident it's giving the matter its deserved care and attention, but: "We will not engage in a futile exercise aimed at diverting the attention of management and key resources from our business operations while creating friction among our stakeholders."
  • At the beginning of the month, Altice USA presented a C$10.3B offer to acquire the Cogeco companies (mainly to get hold of U.S. assets, namely Atlantic Broadband) and sell Canadian assets to Rogers.
  • Updated 5:36 p.m.: In their most recent letter, Altice USA and Rogers said that Cogeco failed to fulfill "their most basic duties" in representing shareholders - including that they rejected the offer without customary procedures including establishing independent committees, or referring the deal to the existing Strategic Opportunities Committee. In response to Cogeco's most recent letter, Altice USA and Rogers say “We remain committed to pursuing this transaction and are open to engaging with shareholders and the boards in a constructive manner.”

Recommended For You