Vodafone (VOD.L) has agreed to acquire Germany's largest cable operator Kabel Deutschland's (KD8Gn.DE) of 7.7 one billion euros (about $ 1 billion), betting on television and fixed-line services in its 2007 Since the biggest deal.
Announced its second major acquisition of a European fixed-line network in 12 months, Vodafone said it would pay 87 euros ($ 110) per group to it to provide a more competitive TV, fixed line and broadband service packs of its mobile customers.
The world's second largest mobile operator, to follow up its global acquisition of Cable & Wireless company, is the price paid by the rich but the German firm and its 8.5 million households, of which it is considering the purchase before it went public in March 2010 in order to share 22 euros for.
Who asked not to be named, a trader said, Vodafone offer the biggest acquisition in India in 2007, the value of the enterprise value of 12 times core earnings for 2013, a premium of 35% of the sector KABEL Germany.
However, this decreased to 8.5 times the expected Vodafone for synergistic extraction. "The trader said:" We believe this is a decent deal, Vodafone,.
Group shares have been trading at 63 euros before February reportedly Vodafone initial interest.
Headquartered in the United Kingdom was forced to raise its offer last week after John Malone's freedom worldwide (LBTYA.O) entering the fray, forcing it to up the stakes, or face losing their freedom of cable operators unified media and Deutsche Telekom (Deutsche Telekom) ground (DTEGn.DE).
"German consumers and businesses high-speed broadband and data services will continue to grow significantly as more and more customers access to television, fixed and mobile broadband services from multiple devices," Vodafone CEO Vittorio Colao said.
"Vodafone Germany and Kabel Deutschland's portfolio will greatly enhance our products in response to these needs."
KABEL German board said it expects to provide advice to its shareholders, but some analysts believe that global free can still return a bargain, even though it may be faced with higher regulatory obstacles.
Greater opportunities
"Vodafone offers free global success of any potential offer, because it will be in cash, will face antitrust obstacles have a greater chance, said:" A shareholder, regardless of who holds the Vodafone and Kabel Deutschland.
Anonymity investors, because it is his fund's policy not to comment publicly on individual stocks.
"Counteroffer provider Liberty Global's possibility still exists, but we believe in freedom of appetite may be tempered by the significant transactions such as regulatory risks," JP Morgan Chase (JPMorgan) analysts said in a report.
The combination of Vodafone and Kabel Deutschland will result in a set of 1.15 billion euros in revenue in Germany, from 32.4 million mobile subscribers, 5,000,000 and 7,600,000 broadband TV subscribers.
Vodafone said it expects from the deal synergies in excess of three million euros per year, the fourth year before the completion of integration costs.
Vodafone also believes have the potential to 15 billion euros from the cross-selling of products and increase customer loyalty revenue synergies.
Quadruple play services, has quickly captured the market, such as France and Spain, where they had taken the lead by a large company France Telecom (FTE.PA) and Telefonica (TEF.MC).
Germany is still some way behind and purchase KABEL could allow Vodafone to steal the German Deutsche Telekom (Deutsche Telekom) parade, the traditional fixed-line groups.
Cable operator Liberty Global suppliers Ziggo (ZIGGO.AS)'s, KABEL Virgin Media VMED.O of Germany and has won customers and investors with their TV, broadband and phone services provided by a combination package that includes the whole of Europe.
Has upgraded their cable, designed to provide families with a TV, make voice calls and the Internet more often than five times faster from telecom operators competing services.
Customers want an array of TVs, laptops and tablet devices to watch TV bundled services have been sold out.
Vodafone's shares were up 1.4 percent in early trading KABEL Germany rose 1.8 percent to 86 euros.
 



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