Microsoft Buys Shares Worth $53.2 Million in UPC
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[June 12] Microsoft Corporation agreed Monday to exercise the warrants it holds in United Pan-Europe Communications (UPC) by purchasing 5.7 million shares worth $53.2 million.
The purchase raises Microsoft's stake in UPC from seven percent to approximately eight percent.
Originally, UPC issued the warrants as part of a technology relationship agreement with Microsoft. They became exercisable in February 2000 but Microsoft has waited until now to snap them up.
"Microsoft adds great strategic value to UPC and we are delighted by its decision to increase its shareholding and by its continued support for our company," said UPC's Chief Executive Mark Schneider.
"We have chosen to exercise our warrants to further demonstrate our commitment to the company," said Vigil.
Europe's largest cable operator with 8.4 million basic subscribers as of March 2000, UPC provides not only cable television but telephony, high-speed Internet access and programming services. Its reach extends to thirteen European countries and across to Israel.
UPC is a subsidiary of Colorado-based UnitedGlobalCom Inc.