Vodafone in talks to buy Kabel Deutschland, reports say -UPDATE

A.B. | ShareCast | 13 Feb, 2013 11:20 - Updated: 16:40 | | |


Vodafone’s German unit is reportedly in talks to buy Kabel Deutschland, the largest cable television operator in the country.

Germany’s Manager Magazin kicked off the speculation of the company’s bid for the rival business.

It said Vodafone Germany's Chief Executive Officer (CEO) Jens Schulte-Bockum and Group Strategy Chief Warren Finegold have put together a plan which has been taken to CEO Vittorio Colao to vote on the proposal.

Vodafone declined to comment on the reports when reached by Sharecast.

Shares in the mobile phone giant were down 4.38% to 32.75p at 11:40 Wednesday, while Kabel gained 8.9% to €69.00.

The news comes after Vodafone last week posted a worse than expected drop in group revenue for the last three months of 2012.

The FTSE 100 telecoms company said revenues fell 1.8% to £11.38bn year-on-year for the quarter, experiencing the biggest decline in the take up of services in Europe.

Is there any truth to any of the above?

Only time will tell if there is any truth to any of the above. However, analysts at Jefferies do see some sense to the speculation. For one, they believe that Deutsche Telekom may at some point decided to push quad-play as a way to outcompete mobile-only and fixed-only competitors - although there are no signs of DT going down this route at this time.

Nevertheless, at some point Vodafone may look 'address' that strategic threat. Interestingly, they add that, "In as much as this is a Europe-wide concern for Vodafone, management might consider taking over Liberty at some point - and owning the largest German cable operator would strengthen that deal rationale."


More news

19:39 Turkish President believes women are not mens' equal

Turkey’s President Recep Tayyip Erdogan has claimed that feminism conflicts with motherhood and that women are unequal to men.

19:51 Bonds: Is the ECB nearing a tipping-point?

These were the movements in some of the most widely followed sovereign bonds:

19:08 BoE chief economist admits risk of weaker growth going forward exists

In remarks to the BBC’s economics editor, Robert Peston, Bank of England chief economist Andy Haldane admitted the risk exists that long-term growth in the UK, and other developed economies, will be "soggier than it has been in the past".

18:45 Russia faces recession, as oil prices continue to drop

The Russian finance minister has warned that the country’s economy could plunge into a new recession.

18:43 Apple awaits record Black Friday sales, will donate to AIDS charity

Analysts have claimed that Apple is on target to experience record iPhone sales over the upcoming holiday season, MarketWatch revealed on Monday.

18:40 German business confidence rebounds after six months of decline

Perhaps the most closely watched gauge of German business confidence broke a string of six consecutive declines in November.

18:04 Government to reprivatise East Coast trains with winning bid

The Department for Transport will announce the official privatisation of the East Coast Mainline later this week by unveiling the winning bid.

18:01 Quindell shares rise on reports of potential non-core disposals

Quindell's share price soared again on Monday amid speculation that the insurance outsourcer is considering selling some of its non-core assets.

17:55 Market overview: M&A speculation lends a hand to Footsie

1630:Close UK Stocks ended the session in the blue, propped up by a spate of M&A speculation and news spanning various sectors, including telecommunications (BT Group), orthopaedics (Smith&Nephew) and finance (Friends Life and RBS). That helped to offset weakness in the oil services patch, on the heels of a profit warning out of Petrofac. BT is of particular interest in so far as the acquirers in a possible corporate tie-up more often than not come up on the short-end after the news breaks. In this case the mooted transaction consists of a strategic merger with O2, which might loosen the financial burden of the same, but even so. TalkTalk gained sharply on the back of BT confirming its interest in O2, possibly as investors in the firm felt vindicated in the strategic path which their firm had set out on. FTSE 100 down 21 to 6,730.

17:13 Europe close: Stocks mixed after German business confidence, US services reports

European stocks were mixed following the release of better-than-estimated German business confidence data and a worse-than-forecast report on US services.



Jens Weidmann, Bundesbank
Weidmann says ECB can only help in short-term, Spain needs to do more

Whereas monetary policy can influence in the short-term, it cannot boost growth in a permanent fashion.


Support and resistance levels Support and resistance levels 21th november 2014