Vodafone halts plans to bid for Kabel Deutschland takeover

Vodafone Group is said to have halted plans to approach German cable operator Kabel Deutschland about a takeover bid, according to Bloomberg.

Vodafone Group is said to have halted plans to approach German cable operator Kabel Deutschland about a takeover bid, according to Bloomberg.

Vodafone was understood to be planning to put forth an offer after Kabel released its earnings results last week.

However, talks were put on hold as leaks of a potential deal complicated internal discussions, sources told the news agency.

Vodafone no longer has a time frame for a possible approach, but may still decide to make a bid at some point, the sources added.

"This leaves Vodafone in an awkward situation," Robin Bienenstock, an analyst at Sanford C. Bernstein, wrote in a note.

Bienenstock said it opened the possibility that Kabel Deutschland will "enter a partnership relationship or more with another wireless player. This could leave Vodafone counter-bidding or simply marginalised".

Royal KPN NV and Telefonica Deutschland Holding AG are potential candidates to partner with Kabel Deutschland, Bienenstock said.

Representatives for Vodafone and Kabel Deutschland declined to comment.

Shares in both companies climbed in morning trading.

Kabel Deutschland, which delivers TV, internet and phone services to more than 8.0m German households, would help Vodafone's struggling business by protecting the group's market share from other cable rivals offering mobile packages.

RD

Recommended

Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021
Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021

Most Popular

The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
How to stop recurring subscriptions becoming a drain on your money
Personal finance

How to stop recurring subscriptions becoming a drain on your money

Tracking and pruning subscriptions isn’t as easy as it sounds. Here's how to take charge.
14 Sep 2021