A Macquarie Group Ltd. infrastructure fund has made an unsolicited offer for Cincinnati Bell Inc., potentially upsetting the telecommunications company’s deal with Brookfield Infrastructure Partners, people familiar with the matter said.
Cincinnati Bell, the parent of Hawaiian Telcom, said Jan. 24 it had received a bid of $12 a share from an unidentified infrastructure fund and had commenced discussions. Brookfield Infrastructure’s agreement in December to buy the company for $10.50 a share, or $2.6 billion, including debt, remains in place, Cincinnati Bell said.
No final decisions have been made, and the Macquarie fund might decide against going ahead with the deal or talks could fall apart, said the people, who asked not to be identified because the matter is private.
Representatives for Macquarie, Brookfield Infrastructure and Cincinnati Bell declined to comment.
Cincinnati Bell closed up 26 cents to $13.71 on Friday, giving the company a market value of about $670 million. The company also has about $2 billion of debt.
Cincinnati Bell acquired Hawaiian Telcom in July 2018 for $650 million in stock and cash. At the time the Hawaiian Telcom deal closed, Cincinnati Bell’s stock was trading at $15.70 a share. The shares later plunged to $7.72 before Brookfield made its all-cash offer.
Macquarie’s bid would value the phone company’s equity at $605 million, while Brookfield Infrastructure’s offer values it at about $530 million, according to data compiled by Bloomberg.
Cincinnati Bell was incorporated in 1873, originally providing telegraph services, making it one of the first “telephonic” exchanges in the U.S., according to its website. It currently serves customers in Ohio, Kentucky and Indiana.
Star-Advertiser reporter Dave Segal contributed to this story.
