Ziggo to be acquired by Liberty Global - ECGS recommends to abstain from granting discharge to the Board

On August 26, 2014, Ziggo will convene an EGM to prepare the takeover of the company by Liberty Global. Within our recently issued report on the EGM, we recommended to oppose the discharge of the Board of Directors as we keep having concerns about the potential severance payment granted by the BOD to ex Ziggo's CEO, Mr. Obermman, who was appointed in 2014, when Ziggo was already entered in discussions with Liberty Global.

In our opinion, the severance package amounting to approximately EUR 5.7 million is too generous, as Mr. Obermann will leave the company with such a package after only one year of service. It is not the first time this year that we have to raise investors' attention on unjustified severance package. In a series of articles and reports issued last month, we already drew attention to ex Nokia CEO Mr. Elop and his unbelievable severance package received after the completion of Nokia takeover by Microsoft in late January. Even if ECGS approves the asset sale at the coming Ziggo EGM, we urge investors to take the general matter of severance payment into consideration to avoid such cases in a close future. 

To read our full analysis of Ziggo EGM on August 26 order the report here by clicking here

London, August 14, 2014