Shares of Consolidated Communications Holdings experienced a significant boost after shareholder Wildcat Capital Management, owned by TPG co-founder David Bonderman, expressed its opposition to a buyout offer. Consolidated’s stock surged more than 13% to $4.08 during morning trading, surpassing the $4-a-share takeover bid made by Searchlight Capital Partners and British Columbia Investment Management in April. Despite this recent increase, the stock remains down by almost 41% over the past 12 months.
Wildcat Capital, which holds a 2.6% stake in Consolidated, has urged the special committee on the company’s board, responsible for evaluating the buyout proposal, not to support any offer below $14 per share. In a letter addressed to the special committee, Wildcat Capital expressed admiration for Consolidated’s strategic plan, which centers on upgrading its legacy copper broadband network to advanced fiber technology. According to Wildcat Capital, Consolidated’s stock price does not yet reflect the value of the company’s investments in its fiber network.
In April, Searchlight and BCI presented a buyout proposal of $4 per share to Consolidated, with Searchlight already holding a 34.3% stake in the company.
