Liberty worldwide features turned the tables on sunrise, making a quote for cell phone business under a year after a merger program led because of the swiss business folded.

The usa group chaired by cable cowboy john malone has consented to get sunrise for sfr6.8bn ($7.4bn) including debt in a landmark tie-up the countrys telecoms industry.

The offer can establish a stronger competitor to incumbent player swisscom, which liberty and sunrise attempted to take on last year in a tried merger which was scuppered by shareholder resistance.

It may be the latest in a sequence of discounts when you look at the industry bringing together broadband and cellular assets, including this years merger of liberty globals virgin media cable business with telefnicas o2 in britain.

Mike fries, leader of liberty international, stated the business never lost sight of plans to merge with sunrise. it wasnt a concern of is this a great deal? just a matter of how it might get done, he informed the financial instances, incorporating that the two businesses had numerous conversations in the last few years.

The denver-based business will pay sfr110 a share in money to acquire sunrise, which is funded from liberty globals money reserves and debt.

Stocks in sunrise soared up to 26 per cent to sfr108.70 after the statement, while liberty's share cost rose 3.3 % to $22.78 during the early new york trading.

Liberty has actually previously offloaded european possessions, offering its cable companies in germany and eastern european countries to vodafone in a 18.4bn bargain couple of years ago.

Mr fries said the companys various methods in germany and switzerland stemmed from an objective to produce fixed cellular champions in core markets, whether or not sometimes that means offering our possessions and obtaining reduced.

However the company believes normally it takes on swisscom, which relating to investment adviser jefferies manages over fifty percent associated with the countrys broadband and cellular membership marketplace. the same numbers for liberty would, after the tie-up with sunrise, be 30 per cent for broadband and simply over a quarter for mobile phone, based on the analysts.

Certainly this [merger] would give united states a much more resilient system where to challenge swisscom mr fries stated. pending regulating endorsement, the companys program would be to invest in the nation and become hostile.

Ulrich rathe at jefferies said the deal highlighted extra area for consolidation into the swiss market. regulatory doubt remains a challenge, despite rival swisscom dominating industry, but mr rathe noted that this past year's unsuccessful merger attempt hadn't sparked significant issue from regulators.

This past year a $6.3bn price by liberty to offer its swiss cable unit upc to sunrise, which will have represented on a clean exit from swiss market for the us business, collapsed after resistance from shareholders including freenet, a german company that has 24 % of sunrise.

Their particular concerns ranged from the size of the rights issue sunrise will have needed seriously to pay for upc and whether it had been overpaying.

Freenet on wednesday said it supported libertys brand-new bid, which appreciates the worth that sunrise has established in the last five years.

The collapse of final years deal disappointed sunrises management, led by previous ee chief executive olaf swantee, just who argued that genuine winner had been swisscom. mr swantee departed soon after for personal equity company warburg pincus.

The operating overall performance of upc features markedly improved because the initial package was established. mr fries informed the financial circumstances just last year it was a fulcrum asset available in the market.