Vodafone seals Kabel Deutschland domination agreement

ReutersDecember 20, 2013
A man passes the company logo of German cable television group Kabel Deutschland in Unterfoehring
A man passes the company logo of German cable television group Kabel Deutschland in Unterfoehring north of Munich June 24, 2013. REUTERS/Michaela Rehle

FRANKFURT (Reuters) - Vodafone agreed on a so-called domination agreement with Kabel Deutschland, three months after its 7.7 billion euro ($10.5 billion) acquisition of Germany's largest cable company went through.

Vodafone will offer the remaining shareholders of Kabel Deutschland 84.53 euros for each of their shares, slightly more than the 84.50 euros it had offered in its takeover bid June.

Some activist shareholders, including Paul E. Singer, founder of U.S. hedge fund Elliott Asset Management, had increased their holdings in Kabel Deutschland, hoping to squeeze out a better offer.

Investors in two other German companies - utility Mainova and HVB Real Estate Bank - used this tactic successfully in other deals to get more for their shares earlier this year.

(Reporting by Harro ten Wolde; Editing by Maria Sheahan)