German telecoms group mobilcom and its Internet offshoot freenet said on June 6, they agreed a valuation range for their planned merger in line with their market price.
Shareholders in freenet would most likely receive 1.14 to 1.19 shares in the combined firm, according to the valuation, while mobilcom shareholders would receive one new share for every one they own, the companies said on Monday
Mobilcom, which already owns 50.4 percent in freenet, wants to reintegrate its Internet arm by way of the merger, a deal which could save the combined firm hundreds of millions of euros in taxes by using mobilcom's huge tax loss carry-forwards.
Shares in mobilcom closed down 0.3 percent at 18.73 euros on Monday, while freenet stock was up 0.2 percent at 21.50 euros, implying an exchange ratio of 1.15.
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