Vodafone just got closer to its acquisition of Germany's largest cable company. Their proposal to buy Kabel Deutschland was formally endorsed by the cable operator's supervisory and management boards. Vodafone's purchase offer was EUR 7.7 billion or USD 10.2 billion. "The management and supervisory boards believe the value of 87 euros per share is fair from a financial viewpoint," the boards said in a statement.
In June, Vodafone announced its plan to acquire Kabel Deutschland as the former faced revenue declines in Europe. First quarter sales in its majority market in Northern and Central Europe dipped 3% because of intense competition. Vodafone took an even worse beating in Southern Europe where sales dropped 14%. Through its acquisition of Kabel Deutschland, Vodafone hopes to increase its product range to more than just mobile services. Despite great sales from India, Africa, and the US, Europe is still Vodafone's most important market, accounting for an estimated two-thirds of its revenue.
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