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Vodafone can swallow the rest of Kabel Deutschland

Vodafone took over the majority of Kabel Deutschland back in 2013. But for years there had been a legal battle between Vodafone and some minority shareholders. This has now been resolved.

After years of legal dispute over the takeover of Kabel Deutschland, Vodafone can now draw a line. The British mobile phone company announced on Tuesday that it had reached an agreement with major shareholder Elliott and other minority shareholders to take over their block of shares.

Vodafone is offering outstanding shareholders EUR 103 per share, which is over EUR 2 billion. The minority shareholders like Elliott, D.E. Shaw and UBS O’Connor LLC, which together hold 17 percent, have already accepted the offer and agreed not to take any further legal action.

Most of the takeover already completed in 2013

In autumn 2013, Vodafone took over around 77 percent of Germany’s largest cable network operator for 7.7 billion euros. Years of legal dispute with major shareholder Elliott followed. The hedge fund carried out a special audit before the Munich Regional Court in mid-2016.

The investor, who holds 14 percent of Kabel Deutschland, was of the opinion that the management of Kabel Deutschland had been satisfied with a takeover offer from Vodafone that was too low. Instead of the € 84.50 per share offered by the mobile phone company, Elliott asked € 225 to € 275.

At the end of 2014, however, a special auditor considered 104 euros appropriate. Another verdict at the end of 2019 also found the offer to be “appropriate.”

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