the market doesn't like that it's possible the KDH takeover offer may fail. The acceptance period for the Takeover Offer expires on 11 September 2013, 24:00 hrs (local time at Frankfurt am Main), unless extended pursuant to the statutory provisions of the WpÜG.
I'm not sure VOD really wants to go through with it anymore. I think Paul Singer has a curious strategy too, because if the 75% threshold is not reached Kabel Deutschland's stock price will probably drop at least 10 euros.
From Bloomberg: "An early end to its quest for Kabel Deutschland would leave Vodafone post its U.S. exit unlevered with minimal net debt,” Citigroup’s Weeden said. A failure of the Kabel Deutschland deal “would keep it as a purer mobile play and might encourage further thoughts among investors of it being a takeover target itself.”
AT&T Inc., the biggest U.S. phone company, may be interested in buying what’s left of Vodafone after the sale to take advantage of growth in mobile networks in Europe, people familiar with the matter said this month. Vodafone spokesman Simon Gordon declined to comment on a potential deal with Dallas-based AT&T or the implications of Elliott’s increased stake.
If the deal doesn't go through, I hope Singer was shorting KDH since his firm owns over 10%. We shall see!
FRANKFURT/LONDON (Reuters) - Vodafone is facing pressure from Kabel Deutschland's largest shareholder to raise its 7.7 billion euro ($10.1 billion) offer for Germany's largest cable company, two sources familiar with the situation said.
Activist investor Paul E. Singer, founder of U.S. hedge fund Elliott Asset Management, more than doubled his stake to 10.9 percent on September 6, Kabel Deutschland said on Monday two days before shareholders have to decide whether to accept Vodafone's offer.
"Vodafone's offer is not ideal. The goal is to renegotiate terms," a person familiar with the hedge fund's thinking said.
A spokeswoman for Elliott, known for its battle for control of U.S. oil firm Hess Corporation earlier this year, declined to comment.
A person familiar with Vodafone said Elliott was building up its stake in an attempt to force a better deal.
If the deal were to collapse, Vodafone would have to rely on renting fixed lines from Deutsche Telekom, rather than owning its network. It also faces the risk of Kabel Deutschland becoming a competitor in mobile phones, analysts said.
"There will not be any additional acceptance period should the 75 percent acceptance condition not be met by Wednesday, 11 September," Vodafone said.
WILL VODAFONE FOLD TO ELLIOTT'S ATTEMPTS? DUN, DUN, DUN!!!