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Digital Realty has confirmed is not to acquire UK Telecity

UK law bounds company from making any bids for the next six months.


American Digital Realty confirmed in a statement it has no intention to acquire UK’s data centre operator TelecityGroup.

Under the UK’s City Code on Takeovers and Mergers, DR is legally bound from making any offers to merge Telecity into its portfolio for the next six months.

The clarification came after Digital Realty noticed "recent speculation" around M&A bids involving Equinix, Interxion and Telecity.

DR became involved in the commercial data centre war after speculation erupted about other companies standing up against Equinix’s bid for Telecity.

Telecity agreed to buy Dutch operator Interxion in a deal worth $2.2 billion on February 11 2015.

But on May 7, Equinix, the world’s largest IBX data centre and collocation provider, placed a $3.5 billion bid to acquire Telecity putting on hold the merger between Telecity and Interxion.

Telecity said it is required to consider Equinix’s offer and the colo company has until June 4 to a company intention to make a formal offer.

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Telecity’s market shares fell 35p this Thursday after DR’s statement, from a 19p increase following Equinix’s proposal last week.

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