Kabel shareholder calls for review of Vodafone sale

Kabel shareholder calls for review of Vodafone sale

13 JAN 2015

Investment firm Elliott Management requested that Kabel Deutschland holds an extraordinary shareholder meeting to investigate how management behaved during the cable operator’s €7.7 billion sale to Vodafone Group.

Elliott, which holds a 13 per cent stake in Kabel, has alleged the Vodafone bid significantly undervalued the German cable operator. The deal closed in 2013.

In addition to management scrutiny, the requested EGM would vote on whether to appoint special auditors to study the transaction.

The acquisition formed a key part of Vodafone’s move to a quad-play strategy in Europe’s largest telecoms market.

Kabel acknowledged receipt of the request in a regulatory filing. It said it would be reviewed and would convene the meeting if legal requirements are met.

An audit report published in December said that Kabel was actually worth 25 per cent more than the amount Vodafone paid for the cable operator.

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Richard Handford

Richard is the editor of Mobile World Live’s money channel and a contributor to the daily news service. He is an experienced technology and business journalist who previously worked as a freelancer for many publications over the last decade including...

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