Germany’s largest cable operator Kabel Deutschland (KDG) has reportedly hired banks to advise on an anticipated takeover approach by Vodafone.

According to sources at Bloomberg, KDG has hired Morgan Stanley and Perella Weinberg Partners to study the “financial and strategic rationale behind an offer.”

Vodafone is thought to be waiting for Kabel Deutschland’s earnings release tomorrow (Wednesday) before initiating negotiations, said one source.

The Financial Times reported last week that Vodafone has been “weighing up” a bid that would give its local mobile arm, Vodafone Germany, an entry into the fixed market – and possibly a defence against the cable firms offering their own mobile services.

Bloomberg calculates that KDG has a market value of EUR6.3 billion ($8.4 billion) and an enterprise value, including debt, of about EUR7.8 billion.

But such a deal may be scuppered by regulators. KDG’s own proposed takeover of smaller rival Tele Columbus Group recently collapsed amid regulatory scrutiny.

Vodafone is believed to have looked at KDG a number of times in recent years. It has also been linked with cable firms in Spain (ONO) and Italy (Fastweb) where it also has local mobile arms.

KDG is owned by Providence Equity Partners; it is Germany’s largest cable operator, boasting almost 14 million subscribers.