Ziggo Confirms Talks On Potential Takeover Offer By Liberty Global; Stock Up

(RTTNews) - Shares of Ziggo NV (ZIGGY.PK, ZIGGF.PK) climbed around 7 percent in Amsterdam after the Dutch broadband provider confirmed recent market speculation, stating that it is currently in discussions with U.S. cable group Liberty Global Plc (LBTYA, LBTYB, LBTYK) regarding a potential takeover offer.

Earlier, there were reports that Liberty Global was preparing to make a new bid for Ziggo, a provider of entertainment, information and communication through television, Internet and telephony services. It is projected that Liberty Global may make the offer either before the end of this year, or in 2014.

In its statement, Ziggo, which is already about 30 percent owned by Liberty Global, said that there is no certainty that any agreement can be reached or that any offer will ultimately be made. The company will make further announcements if and when relevant.

In October, Ziggo, which went public in March 2012, had rejected a preliminary takeover bid from Liberty Global, stating that the potential offer was considered inadequate. The company also noted then that there is no certainty of any revised offer.

In the Netherlands, Liberty, which is controlled by billionaire John Malone, also owns the UPC cable business.

Liberty Global has been extending its presence in Europe, with the acquisition of U.K.'s Virgin Media Inc. for about $16 billion. The company also attempted to buy Kabel Deutschland before being outbid by Vodafone.

Meanwhile, in October, Liberty Global agreed to sell substantially all of its international content division Chellomedia to cable television network AMC Networks Inc. (AMCX) for 750 million euros or $1.035 billion. Liberty Global then said the sale simplifies the business and allows the company to focus on its core markets and more strategic programming opportunities.

In Amsterdam, Ziggo shares are currently trading at 33.04 euros, up 2.19 euros or 7.10 percent.