After a previous IPO announcement and rumours of an imminent sale to private equity firm CVC, it is now reported that Germany’s number three cableco Kabel BW may actually be sold to Liberty Global.
The US media giant, which owns local rival and national…
After a previous IPO announcement and rumours of an imminent sale to private equity firm CVC, it is now reported that Germany’s number three cableco Kabel BW may actually be sold to Liberty Global.
The US media giant, which owns local rival and national number two player Unitymedia, has increased its bid for Kabel BW to about E3bn, according to the Wall Street Journal citing persons familiar with the situation. CVC reportedly offered E2.95bn.
Another private equity firm, Hellman & Friedman, also participated in last week’s final round.
In mid-March, Swedish PE firm EQT, which owns Kabel BW, announced it would list the company and that it was advised by JP Morgan and Deutsche Bank, while BoA Merrill Lynch and RBS are acting as joint bookrunners for the IPO.
EQT has reportedly been asking for at least E3bn for Kabel BW. It was reported, a few days ago, that the final offers were unlikely to be above that price.
In addition, some experts in the industry have expressed concerns about potential regulatory hurdles in case of a deal between Liberty and Kabel BW because of competition issues.
An agreement between the two companies may nonetheless be announced as early as today, according to reports.
