UGC Europe: A Takeover Target?9/14/2003 8:00 PM Eastern
Stifel, Nicolaus & Co. cable analyst Ted Henderson initiated coverage of UGC Europe with a buy rating and a $69 price target, citing new strength in its balance sheet after a sweeping restructuring and a belief that the company could be taken over by Liberty Media Corp.
Amsterdam-based UGC Europe — formerly United Pan-Europe Communications N.V. – is majority-owned by Denver-based UnitedGlobalCom Inc., which itself is 75% owned by Liberty.
With about 3 million subscribers, UGC Europe is the largest cable operator on the continent.
"We anticipate a tender offer for shares of UGCE sometime in the next 6 months, given Liberty's recent track record of rolling up its publicly held subsidiaries such as Liberty Satellite, Ascent Media, and OnCommand," Henderson wrote in a report.