- Zegona Communications said it had terminated a proposed offer to acquire another 14.9% of Euskaltel, citing volatile markets, but left the door open to acquiring its shares incrementally on market.

Zegona had intended to pay €7.75 per Euskaltel to almost double its holding, currently at 15% of the company.

'Given the deterioration in equity market conditions during this period, the terms available for the transaction would not have been acceptable to Zegona shareholders,' the company said.

Zegona said it had agreed terms for a shareholder relationship with Talomon Capital, a shareholder of both Zegona and Euskaltel, that would increase Zegona's 'confidence in its ability to engage positively with Euskaltel with materially increased influence'.

Zegona said it still wanted to increase its ownership of Euskaltel and would therefore seek to raise new equity to fund market purchases of its shares 'at a price it considers attractive for its shareholders based on prevailing market conditions'.

At 1:22pm: [LON:ZEG] Zegona Communications Plc share price was 0p at 122.5p

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