TWO pairs of private equity groups are believed to be preparing bids of up to €5bn (£4.4bn) for German TV and broadband operator Kabel Deutschland.
A joint offer from CVC Capital Partners and Carlyle or an approach from Advent International and BC Partners would pre-empt the initial public offering being planned by Kabel Deutschland’s owner and indicate that the European private equity market is returning to rude health.
The company’s backer, US-based Providence Equity Partners, has hired Morgan Stanley, UBS, Deutsche Bank and JPMorgan to advise on a €1bn part-flotation. However, CVC and Carlyle are thought to have lined up €4bn of bank debt to finance a takeover bid before the IPO.
City A.M. Reporter