German cable operator Kabel Deutschland Holding (KDG) is considering acquiring smaller rivals, including Tele Colombus and PrimaCom, its CEO Adrian von Hammerstein told Dow Jones. He was also quoted as saying that the company would not consider buying…
German cable operator Kabel Deutschland Holding (KDG) is considering acquiring smaller rivals, including Tele Colombus and PrimaCom, its CEO Adrian von Hammerstein told Dow Jones. He was also quoted as saying that the company would not consider buying larger companies such as KabelBW.
Recent rumours about Swedish PE house EQT selling KabelBW raised speculation that consolidation could take place at a higher level, between the main operators. But many speculate that Liberty Global, which acquired Unitymedia in 2009, could merge it with KabelBW.
“I don’t think EQT will decide to list KabelBW for valuation reasons,” said Andrew Hogley, a telecoms analyst at Execution Noble, a few weeks ago. “Instead, there might be a deal between KabelBW and Unitymedia or KDG in the near future – although it would be at a stretch for KDG.”
Besides financial concerns, there is another main hurdle to consolidation – competition. KDG’s expansion plans took a hit when the German federal cartel office told the group it could not merge with rivals KabelBW and Unitymedia on competition grounds. KDG was also blocked from acquiring Pepcom in July last year.
