Vodafone Group plc (LON:VOD) is said to have hired Goldman Sachs as advisers while Kabel Deutschland Holding AG looks to Morgan Stanley and Perella Weinberg.
Kabel Deutschland's earnings were released today, with Vodafone (LSE: VOD) (NASDAQ: VOD.US) said to be waiting on these before initiating negotiations about a potential takeover bid.
The German cable company saw its net profits double for the nine months to 31 December 2012, rising to €200m for the period. Sales were up 8.3% to €1.3bn, while earnings per share climbed to €2.25, up from €1.11 a year earlier. Kabel Deutschland also announced its plan to raise its dividend by 67% to €2.50 per share, with the money coming after its bid for fellow cable operator Tele Columbus was thwarted by Germany's antitrust regulator.
Today's positive trading statement from the Germany cable company should make it that bit more appealing to Vodafone. Indeed, according to Reuters, "a person with direct knowledge of the matter" has claimed that Vodafone has enlisted long-time banking adviser Goldman Sachs to advise on strategic options relating to its potential bid for Kabel Deutschland.
In response, another source claims that the German cable company is said to have hired Morgan Stanley and Perella Weinberg to advise on its strategy should the takeover bid transpire.
The move would enhance the British-based multinational telecommunications company's strategic options, as Vodafone currently owns largely mobile operations in Europe and rents lines from Deutsche Telekom in Germany, while the German telecoms market has proved resilient amid a turbulent economy across the continent.
All companies concerned have so far declined to comment on the news, but the takeover speculation continues to have an impact on Vodafone's share price, dropping 0.5% today to 162.67p, despite winning a mammoth £790m contract for 4G mobile spectrum here in the UK, along with four other competitors.
If you invest for income but already own shares in 5.8%-yielding Vodafone, you may wish to read this exclusive in-depth report about another high-income opportunity within the FTSE 100.
The blue chip in question offers a 5.7% income, might be worth 850p versus around 690p now -- and has just been declared the "Motley Fool's Top Income Stock For 2013"! Just click here to download the report -- it's absolutely free.
> Sam owns shares in Vodafone, but no other company mentioned here. The Motley Fool has recommended shares in Vodafone.
