Vodafone agrees Kabel Deutschland deal

<p>Vodafone is set to buy Kabel Deutschland.</p>

Telecoms company Vodafone has agreed a deal to buy German firm Kabel Deutschland.

Vodafone had faced competition for the sale with Liberty, but was able to secure the takeover for 87 euros (£74) per share.

The company, which is the world's second-largest mobile operator, has now made two major acquisitions for a European fixed-line network in the last year.

Speaking to Reuters, one trader stated that it is a "decent deal" for Vodafone, adding Kabel Deutschland has been valued by the firm at 12 times enterprise value against Kabel's 2013 core earnings, which is a 35 percent premium to the sector.

"German consumer and business demand for fast broadband and data services continues to grow substantially, as customers increasingly access TV, fixed and mobile broadband services from multiple devices," Vodafone chief executive Vittorio Colao said.

A shareholder, who holds both Vodafone and Kabel Deutschland, explained the mobile operator was successful rather than Liberty in the takeover bid due to "antitrust hurdles".

Liberty, the owner of the UK's Virgin Media, was believed to have bid around 7.5 billion euros for Kabel, which supplies 8.5 million German households at the present time.

Today, Vodafone's share price is up by 0.14 per cent on the back of the takeover news.

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