Vodafone is in for a tense wait as the deadline for Kabel Deutschland (KDG) investors to tender their shares looms, with less than 16% having done so yesterday evening (10 September).
That means that as of yesterday evening Vodafone only had secured…
Vodafone is in for a tense wait as the deadline for Kabel Deutschland (KDG) investors to tender their shares looms, with less than 16% having done so yesterday evening (10 September).
That means that as of yesterday evening Vodafone only had secured 19.88% of KDG shares including a 4.27% stake it controls already – far short of the 75% minimum needed for the deal to proceed.
On Monday, Vodafone urged investors in Germany’s largest cableco to tender their shares ahead of the midnight 11 September deadline, saying the terms and conditions of its €7.7bn (US$10.2bn) public offer will remain unchanged. The operator explicitly stated that the offer will lapse if the 75% acceptance level is not reached, adding that there will not be an additional acceptance period.
KDG shareholders had previously expressed concern that the deal would fall apart if Vodafone didn’t lower the threshold before the deadline, noting that it is higher than those for similar deals in Germany.
Recent hedge fund investments in KDG have prompted speculation that some shareholders may hang out for a higher price for their stakes.
Paul Singer’s fund Elliott Capital Advisers more than doubled its stake in the cableco to 10.9% last week, leading to speculation that it may seek a higher price at a later date.
Vodafone is offering €84.50 per KDG share, but this will be upped to €87 per share if settlement takes place before cableco’s shareholders meet to resolve on the proposed €2.50 per share dividend for the last financial year.
The operator confirmed on Monday that only the European Commission will examine the deal as Germany’s Federal Cartel Office (FCO) has declined the option to do so. The EC’s decision is expected by 20 September.
