Pakistanis angry over detentions in Times Sq. case Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They
AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e
BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German
Minister seeks closure of anti-Berlusconi websites Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who
By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an
Edition:
U.S.
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Home
Business
Business Home
Economy
Technology
Media
Small Business
Legal
Deals
Earnings
Social Pulse
Business Video
The Freeland File
Markets
Markets Home
U.S. Markets
European Markets
Asian Markets
Global Market Data
Indices
M&A
Stocks
Bonds
Currencies
Commodities
Futures
Funds
peHUB
World
World Home
U.S.
Brazil
China
Euro Zone
Japan
Mexico
Russia
India Insight
World Video
Reuters Investigates
Decoder
Politics
Politics Home
Election 2012
Issues 2012
Candidates 2012
Tales from the Trail
Political Punchlines
Supreme Court
Politics Video
Tech
Technology Home
MediaFile
Science
Tech Video
Tech Tonic
Social Pulse
Opinion
Opinion Home
Chrystia Freeland
John Lloyd
Felix Salmon
Jack Shafer
David Rohde
Bernd Debusmann
Nader Mousavizadeh
Lucy P. Marcus
David Cay Johnston
Bethany McLean
Edward Hadas
Hugo Dixon
Ian Bremmer
Lawrence Summers
Susan Glasser
The Great Debate
Steven Brill
Jack & Suzy Welch
Breakingviews
Equities
Credit
Private Equity
M&A
Macro & Markets
Politics
Breakingviews Video
Money
Money Home
Tax Break
Lipper Awards 2012
Global Investing
MuniLand
Unstructured Finance
Linda Stern
Mark Miller
John Wasik
James Saft
Analyst Research
Alerts
Watchlist
Portfolio
Stock Screener
Fund Screener
Personal Finance Video
Money Clip
Investing 201
Life
Health
Sports
Arts
Faithworld
Business Traveler
Entertainment
Oddly Enough
Lifestyle Video
Pictures
Pictures Home
Reuters Photographers
Full Focus
Video
Reuters TV
Reuters News
Article
Comments (0)
Counterparties: Today's Best Links
An illustrated guide to "pink slime"
The scandal over the quality of meat in some school lunches isn't just about "pink slime." ProPublica looks at "white slime," "pink slime" and other controversial meat industry products. Read more at Counterparties
Must Read: JPMorgan's big bets
Where the job market is recovering
Follow Reuters
Facebook
Twitter
RSS
YouTube
Read
North Korea's rocket launch ends in failure: South Korea
12 Apr 2012
Exclusive: Iran ships "off radar" as Tehran conceals oil sales
10:23am EDT
Embarrassed by rocket crash, North Korea may try nuclear test
|
12:05pm EDT
Big gap between races in U.S. on Trayvon Martin killing
12 Apr 2012
Flap over Ann Romney shows campaigns' anxiety on women voters
9:54am EDT
Discussed
292
Trayvon Martin call was ”mistake, not deliberate”: NBC
118
Obama healthcare law could sharply worsen U.S. deficits: study
92
North Korea launches rocket amid international condemnation
Watched
North Korea rocket launch fails
12:07am EDT
"Robo-guard" on patrol in South Korean prison
Thu, Apr 12 2012
Transgender beauty says she wants to compete for Miss Universe
Tue, Apr 3 2012
Pictures
Reuters Photojournalism
Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more
Inside North Korea
Rare scenes from within the reclusive state. Slideshow
Refugee art
Drawings on the canvas of tents in Syrian refugee camps on the Turkish-Syrian border. Slideshow
Exclusive: Deutsche Telekom eyes bid for Tele Columbus
Tweet
Share this
Email
Print
Related News
Deutsche Telekom interested in bid for Tele Columbus-sources
7:08am EDT
Dealtalk: What will be the next Instagram?
Thu, Apr 12 2012
Soccer-Sky faces costly battle to retain German rights
Thu, Apr 5 2012
German stocks - Factors to watch on April 4
Wed, Apr 4 2012
Al Jazeera sees sporting chance of global media brand
Mon, Apr 2 2012
Analysis & Opinion
Ireland’s uneasy market comeback
Related Topics
Tech »
Deals »
Global Deals Review: 2011 Q3 »
Global Deals Review: 2011 Q2 »
Global Deals Review »
Inflows Outflows »
Media »
Rene Obermann, CEO of Deutsche Telekom, participates in a U.S. House Judiciary Committe hearing on the proposed merger between AT&T and T-Mobile on Capitol Hill in Washington, May 26, 2011.
Credit: Reuters/Jason Reed
By Philipp Halstrick and Victoria Howley
FRANKFURT/LONDON |
Fri Apr 13, 2012 10:15am EDT
FRANKFURT/LONDON (Reuters) - Deutsche Telekom (DTEGn.DE) is considering a bid for regional cable company Tele Columbus to shore up its position in its key home market against competition from rivals Liberty Global and Kabel Deutschland, sources told Reuters.
By acquiring Tele Columbus, Deutsche Telekom would prevent it from falling into the hands of its cable rivals and send a strong signal that it is refocusing on improving its domestic business after the high-profile failure to sell its U.S. unit to AT&T (T.N) last year.
Cable companies can often offer internet speeds faster than Deutsche Telekom's copper networks, and the former state-owned incumbent has been wary of investing heavily in faster fiber broadband.
By buying Tele Columbus, Deutsche Telekom would also improve its broadband speed in regions where the cable operator is present like Berlin and eastern Germany.
However, the telecom giant will have to fight off Liberty's German unit Unitymedia (LBTYA.O) and Kabel Deutschland (KD8Gn.DE) which are also chasing the Tele Columbus deal that could be valued at 600-800 million euros ($790 million-$1 billion), bankers said.
Tele Columbus's owners, which comprise funds including York Capital and Golden Tree Asset Management, which took over after the company defaulted in 2010, have mandated Rothschild to organize the sale.
Less than ten funds control the lion's share of the equity, one of the owners said, adding that the investors have agreed not to sell for less than 600 million euros.
The German cable market was once one of Europe's most fragmented, with a proliferation of smaller regional players offering television and broadband services.
But private equity firms and companies like Unitymedia and Kabel Deutschland have restructured the market by buying up smaller companies to create more efficient larger players.
That has put pressure on Deutsche Telekom's fixed-line telephone and broadband business in Germany, which brings in more than two-thirds of domestic sales and shrank by 5 percent last year.
For Kabel Deutschland and Liberty, Tele Columbus would also be a strategic acquisition, helping them to accelerate already strong growth and profits in Germany.
Both have big ambitions. Since its public listing in 2010, Kabel Deutschland has impressed investors, while Liberty has been expanding in Europe.
Acquisition of Tele Columbus would enable Kabel Deutschland, Germany's largest cable operator, to raise the closely watched metric of average revenue per user (ARPU), by selling Tele Columbus clients services such as phone and internet.
"The synergies from a deal would be highest for Kabel Deutschland," a source close to the situation said.
REGULATION QUESTION
It remains to be seen how Germany's competition regulator will view further consolidation in the cable market.
Such deals had long been restrained by regulation that effectively banned mergers among large players. For example, Kabel Deutschland tried to merge with Kabel Baden-Wuertemberg (KBW) and Unitymedia in 2004 to take on Deutsche Telekom, but was thwarted by competition authorities.
But some analysts now believe antitrust regulators are becoming more open to consolidation among cable companies, and they point to Unitymedia's 3.16 billion euro acquisition last year of Kabel BW as evidence.
Kabel BW was Germany's third-biggest cable operator at that time with more than 3.8 million connections or about two-thirds of all households in the German state of Baden-Wuertemberg.
The regulators themselves seem to be sending out mixed signals. Even as the competition watchdog approved the Kabel BW acquisition last year, it was complaining that Germany's three largest cable TV operators already constituted a "dominating oligopoly.
Tele Columbus was formerly owned by investor Scott Lanphere's Escaline group and in 2008 almost collapsed under a roughly 1-billion-euro ($1.3 billion) debt load, which Lanphere had dumped on to Tele Columbus while building a cable empire that included German cable group EWT and a majority in rival Primacom.
In the restructuring, roughly 100 creditors agreed to swap part of the debt for equity, pushing out Lanphere. Aligning the interests of the big number of owners is one of the tasks the advisors need to tackle, a person close to the transaction said.
The antitrust question is hard to predict: "That's a black box until the very last day," a source said.
All the companies mentioned either declined to comment or could not immediately be reached for comment.
($1 = 0.7590 euros)
(Writing by Leila Abboud; Additional reporting by Peter Maushagen, Harro Ten Wolde, Leila Abboud and Arno Schuetze; Editing by Erica Billingham and Jane Merriman)
Tech
Deals
Global Deals Review: 2011 Q3
Global Deals Review: 2011 Q2
Global Deals Review
Inflows Outflows
Media
Related Quotes and News
Company
Price
Related News
Tweet this
Link this
Share this
Digg this
Email
Reprints
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (0)
Be the first to comment on reuters.com.
Add yours using the box above.
Edition:
U.S.
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Back to top
Reuters.com
Business
Markets
World
Politics
Technology
Opinion
Money
Pictures
Videos
Site Index
Legal
Bankruptcy Law
California Legal
New York Legal
Securities Law
Support & Contact
Support
Corrections
Connect with Reuters
Twitter
Facebook
LinkedIn
RSS
Podcast
Newsletters
Mobile
About
Privacy Policy
Terms of Use
AdChoices
Copyright
Our Flagship financial information platform incorporating Reuters Insider
An ultra-low latency infrastructure for electronic trading and data distribution
A connected approach to governance, risk and compliance
Our next generation legal research platform
Our global tax workstation
Thomsonreuters.com
About Thomson Reuters
Investor Relations
Careers
Contact Us
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.