Salt Cell, which is owned by French billionaire Xavier Niel and operates in Switzerland, believes the deal may violate phrases of a now-paused $3.1 billion broadband three way partnership, referred to as Swiss Open Fibre, that Salt and Dawn had introduced in May.
Dawn’s board unanimously permitted the Liberty International takeover introduced this month and Dawn shareholder Freenet of Germany has tendered its 24.4% stake, steps which Salt contends “have already destroyed important value for Salt and its shareholders”.
“Salt is worried that the proposed transaction…infringes on contractual rights established as a part of its Swiss Open Fibre three way partnership with Dawn,” Salt mentioned in an announcement.
Dawn countered that it has not violated any contractual obligations to Salt and that nothing concerning the Salt-Dawn tie-up in May precluded a young provide like Liberty’s.
“This state of affairs of an unsolicited tender provide was explicitly catered for within the settlement between Dawn and Salt,” Dawn mentioned in an announcement.
“Dawn has at no time solicited or inspired Liberty’s provide,” Dawn mentioned.
“Certainly, Dawn rejected Liberty’s first proposals…Solely as soon as the present provide was proposed by Liberty, the Dawn board of administrators decided that it was in the most effective curiosity of the corporate.”
No lawsuit has but been filed, Dawn added.
Quinn Emanuel Urquhart & Sullivan, LLP is representing Salt and filed paperwork in a U.S. court docket to permit it to assemble proof to be used in a non-US case.
The Monetary Occasions first reported Salt’s lawsuit menace.