Advertisement

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.

Advertisement - Article continues below

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

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

OBR: UK house prices could fall by 12% next year
House prices

OBR: UK house prices could fall by 12% next year

The Office for Budget Responsibility says UK house prices could fall by as much as 12% next year. John Stepek looks at how likely that is.
14 Jul 2020
Three ideas for Lloyds Bank's new boss
UK stockmarkets

Three ideas for Lloyds Bank's new boss

The Black Horse needs whipping into shape. A change at the top provides a great opportunity, says Matthew Lynn.
12 Jul 2020
We’re spending more than at any time since World War II – how will we pay it back?
UK Economy

We’re spending more than at any time since World War II – how will we pay it back?

With the UK spending vast sums on stimulus measures, this year’s budget deficit will be greater than at any time since World War II. The big question,…
14 Jul 2020