O2 Compulsory Purchase Value

[Steve51]

If the O2 share purchase goes ahead with 90% or more shares sold, then Telefonica can compulsory purchase the remainder. Does anyone know the trading rules, whether Telefonica have to buy the remaining shares at the offer price of �2.00, or can they purchase at some lower price?

If you had BT shares before 2001, and still have them, you might object to the buy out as it kills the opportunity of recouping lost share value from further O2 growth. Are the major share holders long term holders thus likely to loose out, or short term holders getting a quick profit?

[dzug]

I <think> they have to purchase them at the offer price though I'm not 100% sure of this. There is also I think a period of grace to accept the offer once the 90% stage has been reached (or the offer declared unconditional, if earlier) - part B para 1.3.

What I'm not clear about is what happens if they fail to get 90% but still get the 75% that they have said is the point they will apply for delisting. They won't be able to invoke compulsory purchase, but the remaining shares will be difficult to sell to anyone other than Telefonica. Whether they are allowed to offer less than �2 in these circumstances I don't know.

[Steve51]

Thank you for your input. I was just advised by Halifax Share Dealing Service (where I have an old ISA with some BT & O2 shares) that he believed the compulsory purchase price does not have to be the same as the offer price.

Leaves too much uncertainty. I feel I am forced into a corner without sufficient information being supplied to know what happens if we oppose the offer. Also, no offer to buy Telefonica shares as part of the deal.