DT to bid for Tele Columbus?
April 13, 2012
Deutsche Telekom may bid for regional cable company Tele Columbus – Germany’s third largest cable provider with 3.7 million connected households – to shore up its position in its key home market against competition from rivals Liberty Global and Kabel Deutschland, according to Reuters.
By acquiring Tele Columbus, Deutsche Telekom would prevent it from falling into the hands of its cable rivals. Reports in late March suggested that Kabel Deutschland – the country’s largest cable operator – was considering acquiring its smaller rival. Previous takeover attempts have been thwarted by competition authorities. Further competition could come from Liberty Global’s German unit Unitymedia
Tele Columbus’s owners, which include funds including York Capital and Golden Tree Asset Management which took over after the company defaulted in 2010, have mandated Rothschild to organise the sale, which bankers suggest could be in the region of €600 million to €800 million.