Vodafone confirms interest in Kabel Deutschland
Vodafone has approached German cable company Kabel Deutschland over a €7 billion takeover bid as it looks to expand its TV and broadband services.
The British telecoms company said preliminary discussions with Germany’s largest cable operator started this week, after widespread speculation it has been interested in acquiring Kabel Deutschland for a number of weeks.
Vodafone, however, did not go as far as confirming that it will make a bid. “There is no certainty that any offer will ultimately be made nor as to the terms on which any such offer might be made,” the company said in a statement.
Through its extensive worldwide telecoms and wireless business, Vodafone is now looking to solidify itself in other markets with a possible venture into cable to offer fast fixed-line services.
Chief executive Vittorio Colao has previously said it must diversify and expand into other areas in order to compete with other conglomerates that offer multiple media services in bundle accounts.
Vodafone could however face competition from cable company Liberty Global Inc, which is also said to be interested in the German firm.
Kabel Deutschland, which has a reach covering 8.5 million German households, saw shares jump 7.1% after the news, while Vodafone’s slumped 5.5%.