SBC Communications’ €2.35bn disposal of TDC
ABN Amro Rothschild, Citigroup and Goldman Sachs were joint bookrunners
SBC Communications disposed of its 41.6% stake in TDC, which it had assumed on its acquisition of Ameritech in 1999, in two tranches. The first tranche, in June, was the largest accelerated bookbuild deal to take place in the Nordic region in 2004 and one of the largest in the European telecoms sector after France Telecom and Deutsche Telekom. The transaction was structured to maximise the demand dynamics: its equivalent to 40.6% of the free float pricing at just 6.9% discount to the share price one week before the announcement emphasised the strength of demand.
In November, SBC offloaded its remaining 9.5% stake, priced at just 0.4% discount to TDC stock the week before.
Despite the size of the disposal, SBC was able to achieve its targeted proceeds.
