Vodafone has revealed that investors owning about 72.21% of Kabel Deutschland’s (KDG) share capital have accepted its total €7.7bn (US$10.3bn) tender offer for the company, boosting its own stake to 76.48%.
This means the UK-based operator just…
Vodafone has revealed that investors owning about 72.21% of Kabel Deutschland’s (KDG) share capital have accepted its total €7.7bn (US$10.3bn) tender offer for the company, boosting its own stake to 76.48%.
This means the UK-based operator just surpassed the 75% minimum acceptance level needed for the deal to proceed.
An additional two-week acceptance period open to all shareholders of the German cable operator who have not yet taken up the offer starts today.
KDG’s management and supervisory boards have recommended shareholders accept the offer as they consider it to be in the interests of all company stakeholders.
Vodafone said that the deal is now subject to merger control clearance and the European Commission is expected to complete its Phase I review by 20 September.
Meanwhile, a Reuters report citing three unnamed sources familiar with the matter stated three hedge funds, which accepted the offer, reportedly plan to sue for a higher price for their outstanding KDG shares. Paul Singer’s Elliott Management, which raised its stake in cableco to 10.9% ahead of the acceptance period deadline on 11 September, Davidson Kempner and York Capital are hoping a German court will direct Vodafone to offer a higher price, the report stated.
