ZURICH, Oct 10 (Reuters) - Proxy adviser ISS has recommended shareholders vote against a rights issue Sunrise Communications will propose to shareholders to finance its planned 6.3 billion Swiss franc ($6.35 billion) takeover of cable operator UPC from Liberty Global, sources told Reuters.
“On balance, Sunrise appears to be overpaying for assets in a transaction that appears to have debatable long-term strategic merit. As such, shareholders are recommended to vote against the transaction at this time,” ISS said in a document, according to the sources.
Sunrise couldn’t immediately be reached for a comment. ($1 = 0.9921 Swiss francs) (Reporting by Oliver Hirt and Angelika Gruber; writing by Silke Koltrowitz; editing by Brenna Hughes Neghaiwi)