Vodafone Group confirms Kabel Deutschland talks
Vodafone Group has confirmed the long-running speculation that it has been approached by Germany’s biggest cable operator – Kabel Deutschland – about a probable multi-billion dollar take-over, a move which would boost U.K. mobile company’s broadband and TV offerings.
According to reports, Vodafone has offered between €81-82 (£68-69) to Kabel Deutschland but it has dismissed the offer citing it as too low. The mobile company is now reportedly considering to increase its offer.
Since the unearthing of the U.K. Company’s interest in Kabel Deutschland about four months ago, the shares of the cable firm have rose by as much as 27%.
The acquisition of Kabel Deutschland, which has around 8.5 million customers across Germany, would help Vodafone to bolster its mobile and broadband footing in Germany, where it acquired a leading telecom provider – Mannesmann AG – in a takeover worth $180 billion in 2000.
Vodafone, the world’s No. 2 mobile operator by revenue after China Mobile Ltd, last month recorded its first revenue drop in eight years, with rivals offering more competitive service bundles. .
The U.K. Company is also loosening its clutches over the German broadband operations, acquired in the Mannesmann deal, as Deutsche Telekom AG and Unitymedia Kabel have lured millions of its customers with awe-inspiring packages during the past few years.
Since the German takeover law demands the bidders to offer at least the average share price from the past three months, Vodafone would need to put a value on Kabel Deutschland of at least €6.39 billion to proceed with the offer.
And if the deal goes ahead, it will be Vodafone Group’s largest since it started operations in India in 2007 and it will look forward to attract more customers by bundling mobile, fixed-line, TV and broadband services.
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