Kabel Deutschland receives preliminary bid from Liberty Global

Liberty Global’s offer price is believed to be more than Vodafone’s initial bid.

New Statesman
Adrian von Hammerstein, CEO of KDG. Credit: Getty Images.

The German cable operator Kabel Deutschland Holding (KDG) has received a preliminary bid from Liberty Global, a British-registered American telecommunications and television company.

KDG, however, has not disclosed any details of the offer. The Financial Times citing familiar people with the talks reported that Liberty Global had made an offer worth about €7.5bn, or about €85 per share.

KDG, in a statement, said: “There is no certainty that any transaction with Liberty Global plc will ultimately materialise from this proposal, nor as to the terms of such a transaction.”

Last week, KDG confirmed receiving a preliminary offer from the UK telecommunications services provider Vodafone Group.

Vodafone’s informal offer valued KDG at between €81 and €82 per share, reported Bloomberg citing people familiar with the matter.

Now, Vodafone will have to increase its initial offer price in order to stay in the race to acquire KDG.

Earlier this month, Liberty Global, which is owned by John Malone, has closed the acquisition of Virgin Media in a stock and cash merger deal valued at approximately $24bn. The acquisition of KDG is expected to improve Liberty Global’s position in Germany.

Meanwhile, KDG shares closed at €82.47 per share yesterday.