13th Sep 2013 14:49
LONDON (Alliance News) - Vodafone Group PLC Friday confirmed that it had won the support of over 75% of Kabel Deutschland's shareholders, meaning that its takeover of the German cable company will go ahead.
However, Vodafone could still have a battle to take full control of the company if holdout shareholders decide to tray and negotiate for a higher price.
The company had Monday reminded Kabel Deutschland shareholders that they need to accept the offer by Wednesday after getting a low number of acceptances in the early weeks of its takeover offer. That had raised fears the British wireless operator might fail in its bid to acquire the company.
However, the company Friday said it had achieved the 75% minimum acceptance level required for the offer to proceed to completion. It said it would announce the exact details Monday.
Kabel Deutschland said in a statement Monday that stakeholder Paul E. Singer, founder of Elliott Asset Management, had raised his stake in the company to 10.9%.
This raised concerns that if Elliott, known for previously getting involved in takeover battles and agitating for a higher price, hasn't tendered its shares as part of the 75% so far tendered, he may seek to push Vodafone for a higher price.
Vodafone needs 90% shareholder approval to make its offer compulsory.
A spokesperson for Elliott was not immediately available for comment.
By Steve McGrath; [email protected]; @SteveMcGrath1
Additional reporting by Hana Stewart-Smith; [email protected]; @hanassallnews
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