Vodafone, the UK-listed mobile phone group, has confirmed speculation that it has made a preliminary bid approach for German cable company Kabel Deutschland. The press release, in response to a growing chorus of media reports, makes it clear that talks are at an early stage and no terms have yet been agreed.
According to individuals familiar with the situation, Vodafone had been planning an earlier Kabel Deutschland approach but put the bid on hold when information on the potential deal leaked out several months ago. Preliminary discussions have now taken place but, according to a Bloomberg report, takeover talks have not formally begun as Kabel Deutschland believes that the price Vodafone suggested was too low. A takeover of Kabel Deutschland would be worth a minimum US$8.3bn, according to analysts.
In February sources said that Vodafone was weighing a €10bn (US$13.27bn) bid. However, analysts had expected talks to die down after Vodafone struck a deal last month with Deutsche Telekom allowing it to offer pay-TV over high-speed broadband to its German customers.