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Pekka Lundmark, the chief executive of Fortum, says he is optimistic that at least a constructive dialogue can be established between Fortum and Uniper.
Pekka Lundmark, the chief executive of Fortum, says he is optimistic that at least a constructive dialogue can be established between Fortum and Uniper.

 

Pekka Lundmark, the chief executive officer of Fortum, voiced his confidence in the successful completion of the takeover of Uniper, an energy facility operator based in Düsseldorf, Germany, in an interview on YLE TV1 on Saturday.

Fortum in September announced it has signed an agreement for acquiring a 47 per cent of shares in Uniper from EOn.

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The management of Uniper, however, has responded to the announcement by launching a public campaign against the proposed takeover. 

Klaus Schäfer, the chief executive of the energy utility operator, has issued an open letter urging shareholders not to accept what he believes is an irrational and hostile takeover bid. Uniper has also advertised extensively in two of the largest newspapers in Finland, Aamulehti and Helsingin Sanomat.

The acceptance period for the offer began on 7 November and runs until 16 January, 2018.

Lundmark is nonetheless confident that an agreement between the parties can be found in spite of the opposition. “I’m optimistic in terms of us being able to have a constructive dialogue,” he commented to YLE on Saturday.

Fortum, he pointed, would be entitled to a substantial compensation fee in the event that the offer was turned down by EOn. The compensation fee consists of a base fee of roughly 750 million euros – equivalent to 20 per cent of the total offer value – and a variable fee that could equal the base fee depending on the share value of Uniper.

“We drew up the agreement in such a way that it only has good alternatives,” said Lundmark.

Aleksi Teivainen – HT
Photo: Heikki Saukkomaa – Lehtikuva
Source: Uusi Suomi