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Cartel Office blocks Kabel Deutschland, Tele Columbus deal
2013-02-19 11:15:00| Telecompaper Headlines
(Telecompaper) Germany's Federal Cartel Office has rejected a remedy package offered by German cable network operator Kabel Deutschland for its proposed acquisition of rival Tele Columbus. Kabel Deutschland offered to divest Tele Columbus networks in the cities of Berlin, Dresden and Cottbus. However, the Cartel Office wants the company to divest around 60 percent of Tele Columbus networks in Eastern Germany, twice as many as offered by Kabel Deutschland. Kabel Deutschland believes that these demands are not commercially reasonable and now expects the takeover to be blocked by the regulator. It said it will instead focus on exploiting organic growth potential, focusing on internet, phone and premium TV services. Kabel Deutschland first announced the proposed takeover last May, for EUR 603 million. In December 2012, the regulator raised objections, and in January, the operator offered to sell some of the Tele Columbus assets to gain approval.
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Category:Telecommunications