LONDON - The British telecommunications giant Vodafone agreed on Monday to buy the German cable operator Kabel Deutschland for 7.7 billion euros ($10.1 billion).
The announcement follows months of speculation about the future of the German company, which also had received a preliminary approach from John C. Malone’s Liberty Global.
The fight to control Kabel Deutschland, which is Germany’s largest cable company, forms part of the ongoing overhaul of Europe’s telecommunications and cable sectors, as both local players and international competitors compete to pocket assets across the Continent.
Under the terms of the deal announced on Monday, Vodafone, one of the world’s largest cellphone operators, said it had offered Kabel Deutschland’s investors 87 euros for each of their shares in the German firm.
The proposal represents almost a 40 percent premium n the company’s stock since a potential acquisition by Vodafone was first reported in February. Shares in Kabel Deutschland rose 2 percent, to 85.80 euros, in early morning trading in Frankfurt on Monday.
The British telecommunications company said it planned to add Kabel Deutschland’s customers to its current cellphone and broadband businesses in Germany. While Vodafone is a major competitor of Deutsche Telekom’s for phone services, the addition of the German cable operator would allow it to offer a combination of cellphone, fixed-line, broadband and television products to existing and potential consumers.
In total, the combined operations would have around 32 million customers for cellphone service, 5 million for broadband and almost 8 million for cable in Germany, according to a company statement.
“The combination of Vodafone Germany and Kabel Deutschland will greatly enhance our offerings,†Vodafone’s chief executive, Vittorio Colao, said in a statement.
Kabel ! Deutschland’s board said it would recommend the $10.1 billion offer to investors, though Vodafone may still face competition from Liberty Global, which owns Germany’s second largest cable company. The cable operator will report full-year earnings on Thursday.
Goldman Sachs and UBS are advising Vodafone on the deal.
