US cable giant Liberty Media, Germany’s largest cableco Kabel Deutschland (KDG), and a number of private equity firms are among those that may bid for Germany’s third biggest cableco, Kabel BW, according to the Financial Times.
Offers for the company,…
US cable giant Liberty Media, Germany’s largest cableco Kabel Deutschland (KDG), and a number of private equity firms are among those that may bid for Germany’s third biggest cableco, Kabel BW, according to the Financial Times.
Offers for the company, which is valued at between E2.5bn and E3bn, are reportedly expected by mid-February. The PE firms eyeing the cableco reportedly include Apax Partners, CVC Capital Partners, and Hellman & Friedman.
This report echoes similar rumours over the last few months. Back in December, Liberty was quoted saying that it was looking to merge its German cableco Unitymedia – the number two player – with Kabel BW, and had reportedly already hired Goldman Sachs to advise it on the deal and potential anti-trust issues.
Before that, in late November, Swedish private equity firm EQT Partners had mandated JPMorgan and Deutsche Bank to manage its exit from Kabel BW. EQT has owned Kabel BW since 2006, having paid previous owner Blackstone a reported E1.3bn for the assets.
But a merger with either Unitymedia or KDG would come as a surprise given the reluctance of German competition authorities to allow significant consolidation. Last year, the federal cartel office told heavyweight KDG it may not merge with Kabel BW or Unitymedia on anti-trust grounds.
According to the Financial Times, EQT may also decide to list Kabel BW if the offers fall short of the expected selling price.
Spokespeople for Kabel BW and KDG declined comment.