Vodafone to fight Liberty

 
City A.M. Reporter
FTSE blue chip titan Vodafone is understood to be mulling a higher offer for Germany’s biggest cable operator Kabel Deutschland, after Virgin Media owner Liberty Global entered the race to take over the firm.

The new offer, which could see Vodafone match Liberty’s offer of €85 a share, follows on from a initial rebuke from Kabel when €82 was offered by the firm. The new offer, which values Kabel at €7.5bn was first reported by Bloomberg. Vodafone could not be reached for comment late last night.

It follows the intervention of Liberty Global, which is owned by American cable television mogul John Malone, on Monday in the race to swoop for the German cable provider.

Traders gave a mooted reaction to a bidding war yesterday, sending Vodafone shares up to close just 0.9 per cent higher.

Analysts said Liberty’s bid for the cable giant could be impacted by the fact it already owns the second biggest cable provider in Germany Unity Media Kabel BW. Liberty would end up owning 20 per cent of the broadband market and 46 per cent of the TV market in Germany if successful, which could attract the attention of German regulators