Vodafone (NASDAQ:VOD) is upping its bid for Germany’s number-one cable provider, Kabel Deutschland, looking to match or beat the current offer placed by rival Liberty Global (NASDAQ:LBTYA) earlier this week.
Liberty Global, owner of Unity Media, Germany’s second-largest cable provider, made an offer on Tuesday that would value Kabel at 7.5 billion euros ($10 billion). Vodafone, which placed an earlier bid valuing the company at 7.2 billion euros ($9.6 billion), is now considering matching or beating Liberty Global’s offer, according to Reuters.
“Vodafone has told Kabel Deutschland they are working on an improved bid. There is still nothing concrete on the table,” said one of the sources familiar with Vodafone’s thinking.
What are the benefits for each company in an acquisition of Kabel? For Vodafone, it presents a medium by which it can offer television, fixed line, and broadband services to more of its wireless customers. For Liberty, combining the two biggest cable providing companies in Germany is too good an opportunity to pass up.