Media company Liberty Global is unlikely to raise its offer for Kabel Deutschland, removing a possible obstacle to Vodafone’s attempt to acquire the German cable company, Bloomberg reports.
While Liberty made a preliminary offer last month, Vodafone subsequently trumped this, proposing a deal worth around €7.7 billion in cash and taking on €3 billion in debt to give a total value of €10.7 billion.
According to the latest report, this is too rich for Liberty’s tastes.
In addition, as an existing rival to Kabel Deutschland, Liberty would also face an antitrust probe, which would delay the proceedings and complicate the deal – making the Vodafone offer more appealing to Kabel’s shareholders.
Vodafone is looking to take control of Kabel Deutschland in order to bolster its quadplay (fixed, mobile, internet and television) proposition, in the face of fierce competition from rivals such as Deutsche Telekom.
The mobile giant said that it sees opportunity from “leveraging Vodafone’s leading brand and extensive distribution and by cross-selling to each company’s customer base”.