Executive summary - Udo Bullmann

TDC1. Company descriptionTDC is the former national operator in Denmark. As well as continuing dominance of the Danish market, thecompany has expanded its portfolio to include significant holdings in Switzerland and Central Europe. In 2005 TDCemployed some 20,000 staff, 2/3 of which are based in the domestic business and 1/3 internationally. Revenue in2005 stood at EUR 6,245m while net income was just under EUR 1,000m. TDC is organized as six main businesslines: TDC Solutions, TDC Mobile International, TDC Switzerland, TDC Cable TV, TDC Directories, and TDCServices. TDC was partly privatised in 1994 and fully privatised in 1998.2. Economic and social effects2.1 Private equity fund descriptionIn December 2005 the Nordic Telephone Company made a public offering for TDC. The offer valued TDC’s sharesat EUR 29, a premium of nearly 40% on the market price. The Nordic Telephone Company is a conglomerate of fiveinternational equity funds: Apax Partners; Blackstone Group; Kohlberg Kravis Roberts; Permira; and ProvidenceEquity. The new owners intend to remain at the helm for five years before exiting.• Apax Partners is a leading private equity investment advisory group, with offices in London, Madrid, MenloPark, Milan, Munich, New York, Paris, Stockholm and Tel Aviv. Apax Partners manages or advises fundstotalling USD 20bn globally. Headquartered in London, Apax has expertise in the following industrysectors: telecommunications, information technology, healthcare, media, financial services andretail/consumer.• Blackstone was founded in 1985 and is headquartered in New York. The firm raised its first private equityfund in 1987 and since then has invested USD 11.3bn in equity in 89 transactions with an aggregatetransaction value of approximately USD 115bn. In 2000, Blackstone raised BCOM, a USD 2bn funddedicated to investments in the communication and media sector. At that time, BCOM was the largest fundof its kind ever raised. Since 2000, Blackstone has increased its focus on Europe by growing its team to 45European professionals and allocating 33% of funds to European investments representing approximatelyUSD 2.8bn of capital. Blackstone invested USD 2.6bn of equity on European deals over the last four yearsin 16 transactions.• KKR is one of the world's oldest and most experienced private equity firms specializing in managementbuyouts. The firm is currently managing approximately USD11.5 billion in funds, including its USD 6.0billion KKR Millennium Fund L.P. and its EUR 4.5 billion European II Fund. KKR made its firstinvestment in Europe in 1996, and in aggregate has invested USD 4.8 billion of equity in 17 Europeancompanies through a wide range of transactions. These include the largest leveraged buyouts to date in theNetherlands and France and nine European transactions with a value of USD 1 billion or greater.• Permira is a leading global private equity firm and acts as adviser to 18 Permira Funds totallingapproximately EUR 11 billion. The firm, based in Frankfurt, London, Madrid, Milan, New York, Paris,Stockholm and Tokyo, focuses on large international transactions. Permira Europe III is a EUR 5.1 billionprivate equity fund. The investors in the fund are mostly pension funds and other institutional investorsbased primarily in Europe and the United States. The Permira Funds have since their inception had a strongfocus on telecoms and technology investing over 30% of all investments in this sector.• Providence is a global private investment firm specializing in equity investments in media, communicationsand information companies around the world. The principals of Providence Equity manage funds with overUSD 9.0 billion in equity commitments, including Providence Equity Partners V, a USD 4.25 billion privateequity fund, and have invested in more than 80 companies operating in over 20 countries since the firm’sinception in 1990.