Liberty Global enters race to acquire Kabel Deutschland

18 June 2013 | Kavit Majithia


US media group Liberty Global has entered the race to acquire Kabel Deutschland (KDG) after reportedly bidding more than rival Vodafone to acquire Germany’s largest cable operator.

Liberty has already acquired UK company Virgin Media this year for approximately $23.3 billion, and has reportedly tabled a bid equating to €7.5 billion for Kabel Deutschland, at €85 per share.

Vodafone sounded out preliminary talks with Kabel Deutschland last week and reportedly offered €7 billion for the company.

It is thought the operator will increase its bid in order to advance talks, but it is yet to make a bid.

The German cable operator confirmed Liberty’s interest, but did not mention that the deal had any certainty of being completed.

When talks initially commenced, Kabel Deutschland claimed Vodafone would have to bid “a significant premium to its market value”, and the company’s shares have risen by 9% to €82 per share since the initial approach last Wednesday.

According to the Financial Times, Liberty’s approach is likely to add pressure to Vodafone’s shareholders to up its bid. There are also analyst concerns that Vodafone has a history of overpaying for acquisitions.