Energis bidder threatens walkout

12 April 2012

THE bidder for Energis's UK arm has warned it will walk away unless a deal is struck early next week, threatening the rescue of the troubled business telecoms operator.

The consortium, led by venture capitalists Apax Partners and Carlyle Group, has tired of lengthy talks. It will make its final offer within two days. It wants the banks to roll over 60%-70% of the £700m they lent to the UK business and convert the balance into shares or warrants. The consortium would take over the company and inject a further £100m to fund the operation until it makes a profit.

The deal would leave holders of Energis's £560m bonds with nothing but a claim over its loss-making European operations. Shareholders of the company, headed by Gordon Owen, would get nothing.

If banks reject the offer, they and the bondholders will have to find an investor willing to put up the extra £100m funding - no easy task when confidence in telecoms companies is at an all-time low. Energis, once 793p, rose 0.3p to 1.37p.

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