Liberty Media has disclosed that it is to extend an offer to acquire bonds of the UK cable operator, Telewest after a group of bondholders filed a lawsuit claiming that the offer was illegal.
Telewest, which is £5.3 billion in debt, announced last week that it was to begin refinancing negotiations (see
Telewest Agrees To Discuss Refinancing) and Liberty claims to have received tender offers for 17% of its outstanding non-convertible bonds. The US media corporation already has a 25% share in the company.
However, a number of Telewest bondholders have filed a suit in a New York court, alleging that “the offer is illegal and that it has been disseminated by means of an offer to purchase which contains material omissions and misrepresentations.”
Liberty has agreed to extend the expiration date of the tender offer by one week, until July 19, and authorised bondholders who have tendered their bonds to withdraw them, if so desired, in view of the pending legal action.
Telewest shares were unchanged at 2Âźp by mid-afternoon today.
