Vodafone faces pressure to raise $10bn Kabel bid

Vodafone is facing pressure from Kabel Deutschland's largest shareholder to raise its €7.7 billion offer for Germany's largest cable company, two sources familiar with the situation said.

Activist investor Paul Singer, founder of US hedge fund Elliott Asset Management, more than doubled his stake to 10.9 per cent on September 6th, Kabel Deutschland said yesterday 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.

Vodafone urged Kabel Deutschland shareholders to accept its €84.5 a share offer earlier yesterday and warned the bid would lapse if the holders of less than three quarters of the German company’s shares agree to sell by tomorrow. – (Reuters)