The Vodafone Group takes over Germany’s largest cable operator

Newsroom 25/06/2013 | 11:17

The Vodafone Group has reached an agreement to buy cable operator Kabel Deutschland Holding AG for approximately EUR 7.7 billion, in the second-biggest takeover of a telecommunications network in Europe this year, writes Bloomberg.com.

This takeover will give Newbury, England-based Vodafone access to Kabel’s 8.5 million connected households and potential customers for triple play packages including phone, Internet and TV subscriptions, writes Bloomberg.com.

After the transaction, Kabel will remain a separate legal entity after the transaction closes, and its management will take over responsibility for Vodafone’s fixed-line retail business in Germany.

Vodafone was interested in bidding for Kabel Deutschland in February 2010, when the company was valued at EUR 5 billion at the time. However, Kabel Deutschland’s share price almost tripled in the three years since, according to Bloomberg.

According to the same source, Liberty Global is analyzing making a counter-offer and should decide this week on whether to make a counterbid.

Liberty Global completed a USD 16 billion acquisition of Virgin Media Inc. in the U.K. this month.

Otilia Haraga

 

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