Vodafone to make new Kabel bid on Monday: sources
FRANKFURT/LONDON (Reuters) - British mobile operator Vodafone (VOD.L) will go public with its revised all-cash offer for Germany's cable group Kabel Deutschland (KD8Gn.DE) early on Monday, two sources familiar with the situation told Reuters on Sunday.
One of the sources said the offer would be 87 euros per share, which includes an offer of 84.50 euros per share plus a 2.50 euro dividend that had been pledged by Kabel but not yet paid. That would give a total of 7.7 billion euros ($10.12 billion)
The two sources, who spoke on the condition of anonymity, said Kabel Deutschland looked set to recommend the new offer to its shareholders, but one of the sources cautioned that could still change.
Vodafone contacted Germany's largest cable operator earlier this month to indicate that it would be willing to pay about 81 euros per share, or 7.2 billion euros for the group. However, the offer was deemed to be inadequate and since then John Malone's Liberty Global (LBTYA.O), which owns Germany's No. 2 cable operator Unity Media, has made an 85 euro-per-share offer.
Vodafone wants Kabel so that it can offer more competitive, comprehensive packages with television, fixed-line and broadband services for more of its mobile customers, while Liberty Global wants to expand in one of its best-performing markets.
Vodafone also believes it will have the advantage over Liberty because its offer would be in cash and it is likely to face fewer regulatory barriers than Liberty.
Vodafone and Kabel Deutschland both declined to comment
($1 = 0.7612 euros)
(Reporting by Alexander Hübner in Frankfurt and Kate Holton in London; Editing by Alexander Ratz and Maureen Bavdek)
- Tweet this
- Share this
- Digg this