Voda hires UBS and Goldman for cable deal

VODAFONE has appointed banks to advise on its proposed acquisition of German cable operator Kabel Deutschland, with Goldman Sachs and UBS to work on the deal, sources close to discussions have said.

The British telecoms giant is considering a takeover of the German firm, which would strengthen its presence in one of its biggest markets.

Goldman and UBS have a history of working with Vodafone. UBS led Vodafone’s £1bn takeover of Cable & Wireless Communications, and Goldman has long worked with the company.

Speculation over a deal for Kabel Deutschland sent shares in the company up almost nine per cent last week. The company’s market capitalisation was €5.95bn (£5.2bn) last night, a price that would make a deal Vodafone’s biggest acquisition since 2007.

Kabel’s earnings report, released this morning, will be pored over by Vodafone before a bid is made.

The companies did not comment.