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Vodafone to buy German cable giant Kabel Deutschland

June 24, 2013 at 9:16 AM   |   Comments

LONDON, June 24 (UPI) -- British telecommunications giant Vodafone said Monday it would buy Germany's largest cable operator, Kabel Deutschland, for $10.1 billion.

The deal breaks down to an offer of $104.70 per Kabel Deutschland share, The New York Times reported. That includes a $3.27 dividend the German firm had committed to in February, the Times said.

The offer represents a 40 percent premium over the German company's market value in February, when news of a potential deal reached the public.

"Kabel Deutschland and Vodafone are an ideal fit," said Kabel Deutschland Chief Executive Officer Adrian von Hammerstein in a statement.

For Vodafone, the deal adds to its position in Germany, which is substantial. In 2000, Vodafone purchased Mannesmann, a German wireless provider, for $183 billion.

The Times said the expanded Vodafone would have 32 million telephone customers and 5 million broadband users. In addition, the firm is acquiring a business with 8 million cable subscribers in Germany.

"The combination of Vodafone Germany and Kabel Deutschland will greatly enhance our offerings," Vodafone's chief executive, Vittorio Colao, said in a statement.

© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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