Europe's largest mobile phone operator Vodafone Group said today it would proceed with a buyout of Vodafone Libertel at €11 a share even though its Dutch subsidiary wanted a higher price.
Shares in Vodafone Libertel climbed 4.4 per cent to €10.95 in Amsterdam on the announcement. They had slumped last week on fears Vodafone might withdraw its offer after management of the Dutch unit decided not to recommend the bid.
Talks had broken down between the two sides over the possibility of raising the €771 million ($825.7 million) buyout bid Vodafone made a month ago for the 22 percent of Libertel that it does not already own.
Some analysts in Amsterdam have said Libertel was worth more than Vodafone's offer.
Vodafone said today it would not raise its offer and it was in the best interests of all Libertel shareholders to be given the opportunity to tender their shares.
Libertel said it would cooperate with Vodafone even though it said the offer did not adequately reflect the value of the shares, Vodafone said in a statement.
Vodafone also wants to mop up stakes in two other listed subsidiaries in an effort to centralise its decision-making. It finalised offers last week for Europolitan in Sweden and Telecel in Portugal.