Mobile phone operator Vodafone faces a battle over the purchase of Kabel Deutschland after Liberty also launched a bid for the firm.
Vodafone confirmed earlier in the month that it has held talks over a potential takeover of Germany's top cable television company, although it stressed it is yet to make an offer.
Liberty, the owner of the UK's Virgin Media, has now stated it has made an approach to take over Kabel Deutschland, with analysts believing the size of the offer to be in the region of 7.5 billion euros (£6.3 billion).
Vodafone could be forced into making an offer after the first move was made by Liberty. It is thought initial talks between Kabel and Vodafone broke down as the two companies had a different valuation for the German firm.
Liberty's owner, billionaire founder John Malone, has been trying to expand the company's reach across Europe in recent years and the bid for Kabel is likely to be a continuation of that strategy.
Kabel Deutschland supplies 8.5 million German households at the present time.
Find up to date information on the FTSE 100 and spread betting strategies at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.