Vodafone Group agrees to buy Kabel for $10.1 billion
Vodafone Group Plc, UK-based global telecom giant, has agreed to acquire Kabel Deutschland Holding for 7.7 billion euros or about $10.1 billion after it increased the offer for the German company.
Vodafone increased the offer to 87 euros a share from the original 80 euros for Kabel Deutschland Holding AG, which is the largest cable operator in Germany, after US-based Liberty Global Plc made a rival offer for the German firm. People closer to the matter indicated that the two firms might announce the deal today after their board held meetings yesterday on the matter.
Vodafone has said that it would pay 85 euros a share, which is higher than 80 euros to 82 euros per share offered earlier for the German company. Vodafone has only made an initial offer and is analysing the company's accounts for making an official offer for the company. Liberty Global already owns Germany's second biggest cable operator and had offered to pay 85 euro a share.
Vodafone increased its offer and now it matches that of the American firm and values the Germany Company at 7.5 billion euros or about $10.04 billion. Kabel Deutschland's board had reportedly snubbed a preliminary offer from Vodafone but many believe that the revised offer from the British giant could convince the board of the company. The acquisition will allow Vodafone to get access to the German company's 8.5 million connected households and potential customers for its packages of phone, Internet and TV subscriptions.