By Archibald Preuschat
Liberty Global Inc. (LBTYA) is interested in further market
consolidation internationally, including in Germany, chief
executive Michael Fries told Dow Jones Tuesday at the cable and
satellite exhibition ANGA COM.
"We want to profit from economies of scale in all countries in
which we do business, not just Germany," Mr. Fries said.
But in Germany, where Liberty Global owns the nation's
second-largest cable operator, KabelBW, further consolidation is
beginning to look difficult. "In Germany we're running into several
growth-related challenges," Mr. Fries explained, without going into
details about specific purchases.
For months market speculations have been about that Liberty
Global is interested in Germany's largest cable operator, Kabel
Deutschland AG (KD8.XE).
Vodafone Group PLC (VOD) is likewise interested in the cable
company, and Monday Dow Jones reported that Vodafone revived its
evaluation of a takeover of Kabel Deutschland.
Vodafone's rekindled interest in Kabel Deutschland comes as a
surprise after it made a deal with Deutsche Telekom AG (DTE.XE) in
mid-May to use the German incumbent's network to offer its clients
broadband and television services, which many analysts thought
thereby rendered an acquisition of Kabel Deutschland
unnecessary.
Liberty Global proved its interest in international markets in
the last months, purchasing Virgin Media Inc. (VMED) in the U.K.
and a stake in Dutch competitor Ziggo NV (ZIGGO.AE).
Write to Archibald Preuschat at
archibald.preuschat@dowjones.com
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