“Vodafone Group Plc is considering a bid for Kabel Deutschland Holding AG, Germany’s largest cable provider, to expand in the country’s pay-TV and Internet market, according to a person with knowledge of the matter.
Vodafone hasn’t yet contacted Kabel Deutschland about its intention, said the person, who asked not to be identified because the plan is private. Kabel Deutschland, which is based near Munich, rose as much as 14 percent in Frankfurt. Manager Magazin reported the takeover plan earlier today.
Buying Kabel Deutschland, whose market value tops 6 billion euros ($8 billion), would be another step for Newbury, England- based Vodafone, the world’s second-largest wireless carrier, to expand into fixed-line operations as it seeks to fuel sales growth. The company acquired Cable & Wireless Worldwide last year to boost its fixed-line system in the U.K.
Vodafone has been discussing the Kabel Deutschland acquisition internally among its management and with investment banking advisers, the person said. Vodafone was planning to contact Kabel Deutschland regarding a potential bid next week, the person said.
Matt Morgan, a Vodafone spokesman, and Insa Calsow, a spokeswoman for Kabel Deutschland, declined to comment….”
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