Vodafone Group plc (LON: VOD) announces the approach on ex-div day.
Vodafone (LSE: VOD) (NASDAQ: VOD.US) slumped 10p, or 5%, to 182p during early trade this morning after the shares went ex-dividend and the telecoms group issued a statement about Kabel Deutschland.
The FTSE 100 member confirmed it had made a preliminary approach to Kabel Deutschland regarding a possible offer for the company. Vodafone added there was no certainty any offer would be made.
Bloomberg reported this morning that Vodafone had contacted the German firm last week to discuss a potential offer. Serving more than 8 million households, Kabel Deutschland is Germany's largest cable operator and sports a market cap in excess of €7bn.
Bloomberg claimed formal talks between the companies had yet to start because Vodafone's indicated bid was "too low".
Kabel Deutschland's shares rallied 7% to €79 during early Frankfurt trading today. Ongoing speculation of an approach from the British blue chip has helped the German shares surge 79% during the last twelve months.
Last month Vodafone declared a 6.92p per share final dividend, which will be distributed to anyone that held the shares before this morning.
Vodafone's 10.19p per share full-year payout now supports a 5.6% income for anyone wishing to buy today. However, the blue chip has said it "aims at least to maintain" its next dividend, suggesting next-to-no income growth in the near term.
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> Maynard does not own any share mentioned in this article. The Motley Fool has recommended shares in Vodafone.