abertis telecom has informed Axión and Teledifusión de Madrid shareholders that given the conditions imposed by the Board of Spains anti-trust authority, the CNC, affecting the development of the industrial project and the accompanying investment plan, it will be impossible to continue with the acquisition of their respective shares.
Having analysed the conditions attached to the authorisation of the acquisition of the audiovisual transmission and broadcast networks operators Axión and Teledifusión de Madrid, published on July 16th by the Board of Spains anti-trust authority, the CNC, and taking into account the confirmation of those conditions by the Ministry of the Treasury, abertis telecom has informed both companies shareholders of its decision not to proceed with the process. The company has made it clear that said conditions restrict the company in reaching the objectives underlying the agreements and the industrial project providing the rationale for both operations.
abertis telecom announced an agreement reached with the majority shareholder of Axión - the French company TDF owning a 65% share−, to acquire its stake in the operator for 104 million euros. Axión operates a total of 549 broadcasting and distribution sites in Spain, the majority of them located in Andalusia to give service, in particular, to the Regional television and radio channels.
The agreement, aside from the authorization of the anti-trust authority, was likewise based on the renunciation of preferential acquisition rights by the company's remaining owners −Sandetel (part-owned by the local government of Andalusia, the Junta de Andalucía), with 23% and the Unicaja and Cajasol savings banks with an aggregate 12%. The latter have not only renounced these rights but have also demonstrated their willingness to join the operation by selling their stakes too.
In March 2008, abertis telecom reached an agreement with the shareholders of Teledifusión de Madrid to acquire an 80% stake in the local signal transmitter operator whose activity is restricted exclusively to the Madrid area. In this case the cost of the operation ran to 3.6 million euros.