PE firm Waterland ends alliance with Giacom in Gamma takeover pursuit

• Gamma Communications agreed to a £1.08 billion takeover by Epiris at 1,120 pence per share in early September, after months of negotiations
• Multiple private equity firms have pursued Gamma this year, including Oakley Capital and Providence Equity Partners, both of which withdrew bids in June
• Waterland was previously planning to act in concert with Giacom, which would have acquired certain Gamma business units as part of the deal structure

Summary: Waterland Ends Giacom Alliance in Gamma Communications Takeover Bid

Dutch private equity firm Waterland announced Friday it has dissolved its partnership with UK-based telecom service company Giacom regarding a potential acquisition of British telecommunications firm Gamma Communications.

Key Developments:

Gamma Communications agreed earlier in September to a takeover offer of 1,120 pence per share from private equity firm Epiris, valuing the company at approximately £1.08 billion ($1.46 billion). This agreement followed months of takeover negotiations.

Waterland stated it continues to evaluate its interest in Gamma independently, though no firm offer is certain at this time. Previously, the companies had announced a concert party arrangement where Giacom would acquire certain Gamma business units as part of a joint bid structure.

Market Context:

Gamma has attracted significant private equity interest throughout the year. Other suitors including Oakley Capital and Providence Equity Partners previously withdrew their bids in June, leaving the field more open for competing offers.

Reports from The Sunday Times suggested Waterland might present a counter-offer exceeding Epiris' current £1.08 billion bid, though this remains speculative following the dissolved alliance.

Implications:

The breakdown of the Waterland-Giacom partnership simplifies the bidding landscape but introduces uncertainty around whether Waterland will pursue an independent offer. Gamma shareholders await clarity on whether a higher competing bid will materialize to challenge the agreed Epiris transaction. The telecom sector continues to see active M&A interest from private equity firms seeking exposure to communications infrastructure and services.