Spanish telecommunications and media powerhouse Telefonica has launched its anticipated public offer to buy out Dutch entertainment giant Endemol. The offer, which runs from July 3-24, values Endemol at Euros4.79bn.
The Spanish company has had to pay a high price to complete the buy-out, thanks to a fall in share value at Telefonica ostensibly brought about by insider trading accusations against the company's president, Juan Villalonga.
The anticipated offer of 5.58 Telefonica shares per Endemol share, based on Telefonica's March share price of Eur28.30, was raised to 6.2 shares for every one of Endemol's based on a June 28 Telefonica share valuation of Euros22.25 on the Madrid Stock Exchange.
Endemol's value has also been brought down, with the company's shares now valued by Telefonica at Euros138 rather than Euros158. The buy-out was originally priced at Euros5.5bn.
The Telefonica offer is conditioned by the stipulation that the Spanish firm receives at least 75% of Endemol's shares by closing date July 24. The buy-out, which made headlines across Europe on March 17, unites Endemol's massive content with Telefonica's varied distribution platforms.