Three hedge funds who supported Vodafone’s successful bid for Kabel Deutschland plan to sue the UK operator, in a bid to squeeze a higher price from the deal, reports Reuters.

Vodafone said at the end of last week it had succeeded in attracting the support of investors representing 75 per cent of the shares in the German cable operator.

The UK company needed to hit the 75 per cent target by midnight on 11 September for the deal to go ahead.

However, although Elliott Management, Kabel’s largest shareholder, tendered part of its stake in order for the bid to succeed, it is now planning legal action along with two other hedge funds, Davidson Kempner and York Capital.

The hedge funds hope to force a higher price from Vodafone for their remaining stakes, said sources familiar with their plans. Elliott Management holds a 10.9 per cent stake in Kabel.

There is now an additional acceptance period running from 17 September until 30 September for those shareholders who have not so far accepted the Vodafone offer.

Under German law, Vodafone must make an offer to the remaining shareholders who are holding out against its offer. It is thought unlikely that the operator will make an increased offer.

Vodafone is due to publish a statement today (16 September) with how many shares were tendered in support of its offer last week.