UK-based mobile operator Vodafone said it is not looking to bid for KDG, according to Dow Jones Deutschland citing a Vodafone spokesperson.
This comes after recent reports suggested that the giant was looking to buy the German company. Such speculation…
UK-based mobile operator Vodafone said it is not looking to bid for KDG, according to Dow Jones Deutschland citing a Vodafone spokesperson.
This comes after recent reports suggested that the giant was looking to buy the German company. Such speculation comes against the backdrop of two major themes in developed market M&A: in-country consolidation, and fixed/mobile convergence. This marks a shift away from large-scale transactions, as operators look to offer more services to existing customers.
When contacted, both Vodafone and KDG declined to comment. But a source close to Vodafone played down the speculation about a potential bid.
Such rumours have been circulating for a few years now, at least since November 2008.
Such a deal could have a significant impact on the fragmented cable market, which is currently undergoing consolidation.
Just a couple of months ago, US media giant Liberty Global announced it would buy cableco Kabel BW for E3.16bn, pending approval by competition authorities. Liberty is expected to merge its local subsidiary Unitymedia and Kabel BW, the respective number two and number three players.
KDG itself was rumoured to be among the bidders for Kabel BW. But in the past, the Federal Cartel Office competition regulator told KDG it could not merge with Kabel BW or Unitymedia on anti-trust grounds. In 2002, Liberty itself was not allowed to buy incumbent Deutsche Telekom’s cable assets, which were sold off in regional blocks, some of which became KDG.
However, the Cartel Office’s current main concern may not be Liberty’s increased regional footprint. Instead, it is feared that some content providers could be discriminated against by a stronger player.
