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Telenet on Sunday set the pricing for its initial public offering next month, which will see just under 50 per cent of the Belgian cable operator come to market, valuing it at up to €2.5bn ($3bn).

The float of new and existing shares could raise just under €1.3bn based on the indicative price range of between €21 and €25.50. The company is expected to begin trading on Euronext in Brussels next month.

The sale includes around €300m in new shares with the funds raised used to reduce the company's debt, which stands at €1.5bn.

Duco Sickinghe, chief executive, said last week that the plans for debt reduction would act as a lure to investors as they could lead to greater future cash flow.

The group would consider partnerships but was not planning acquisitions. Belgian local authorities control 34 per cent of Telenet, the largest holding in the company.

Among its other big shareholders is Liberty Global, a group controlled by US media mogul John Malone, which owns 21 per cent.

Set up in 1996, Telenet provides internet, television and telephone services, largely to residential customers in Flanders, the Dutch-speaking part of Belgium.

KBC, JPMorgan, Lehman Brothers and Merrill Lynch are bookrunners and underwriters to Telenet. The company has appointed Goldman Sachs as sole adviser.

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