Denmark’s TDC Said to Attract Orders for All Shares in Offering

TDC A/S, Denmark’s biggest phone company, has attracted orders for all 210 million shares on sale in its stock offering, according to two people with direct knowledge of the matter.

The banks managing the offering started taking orders yesterday and plan to complete the sale on Dec. 8, said the people, who declined to be identified because the talks are private. TDC’s owners, a group of five private equity firms, are offering the shares for 47 kroner to 56 kroner each, the company said on Nov. 25. It may sell another 31.5 million shares through an overallotment option if demand is sufficient, bringing the total offering to as much as 13.5 billion kroner ($2.4 billion).

Apax Partners LLP, Blackstone Group LP, KKR & Co., Permira Advisers LLP and Providence Equity Partners Inc. acquired their 88 percent stake in TDC in 2006 in a transaction worth about $15.3 billion, including net debt.

Lasse Bastkjaer Jensen, a spokesman for TDC, and Charles Chichester, a spokesman for the group of private equity firms, both declined to comment.

The buyout firms are selling a stake as investors seek dividend yields from European telecommunications stocks after years of rapid growth and overseas acquisitions. TDC’s Chief Executive Officer Henrik Poulsen has promised to return 80 percent to 85 percent of free cash flow to investors in dividends. The Copenhagen-based company plans to pay a dividend of 4.35 kroner a share in 2011.

Share Buyback

TDC also plans to buy back as much as 9 billion kroner of stock from all shareholders. The buyout firms will retain a stake of as much as 60 percent after the share sale and buyback, Poulsen said in a conference call last week.

JPMorgan Chase & Co., Morgan Stanley and SEB AB are managing the share sale as global coordinators, while Deutsche Bank AG and UBS AG are also acting as bookrunners.

TDC attracted the orders as European stocks rebounded from an eight-week low with their biggest gain in three months.

The Stoxx Europe 600 Index surged 2 percent yesterday amid speculation that European Central Bank policy makers may step up measures to contain the region’s debt crisis. TDC advanced 1.25 kroner, or 2.5 percent, to 52.25 kroner in Copenhagen trading, valuing the company at 51.8 billion kroner.

To contact the reporter on this story: Zijing Wu in London at zwu17@bloomberg.net.

To contact the editor responsible for this story: Daniel Hauck at dhauck1@bloomberg.net.

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