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Vodafone Group Agrees to Kabel Deutschland Deal

Sam Robson
June 24, 2013

LONDON -- Shares in Vodafone (LSE: VOD) (NASDAQ: VOD) rose 1.5% in early trade this morning, as the telecoms Goliath announced its intention to acquire Kabel Deutschland in a deal worth 7.7 billion euros.

Although rumors of an acquisition have been floating around for months, Vodafone only officially announced a preliminary approach for the German cable operator two weeks ago, with an indicated bid of 80 to 82 euros per share.

However, days later, U.S. firm Liberty Global threatened to derail the British-based company's bid after putting an offer of 85 euros per share onto the table, which valued Kabel Deutschland at 7.5 billion euros.

Subsequently, Vodafone fended off this rival bid by going back with an offer worth 87 euros per share in cash, valuing Kabel at 7.7 billion euros in total (6.6 billion pounds), which has been accepted.

Group chief executive Vittorio Colao commented