Kabel Deutschland eyes consolidation
EmptyMUNICH -- Germany's biggest cable operator, Kabel Deutschland (KDG), has acquired an 18.6% stake in competitor PrimaCom, which is currently up for sale, KDG announced over the weekend.
A KDG spokesman on Monday said that the company is "securing its options for the future" and looking toward a "possible consolidation of the cable market in Germany," but said that a definite decision to make an offer for PrimaCom has not been made.
The stake is comprised of 3.8 million shares, 2.9 million of which cost €12 ($16.15) per share, the spokesman said. The price of the remaining shares was lower, bringing the total cost of the deal to under €45 million ($60.5 million).
PrimaCom announced a week ago that there were several parties interested in acquiring the cable operator, leading to speculation that Kabel Deutschland would make an offer, perhaps together with Orion Cable.