This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Vodafone Faces Lawsuit Over Kabel Deutschland Bid

Stocks in this article: VOD

BERLIN (The Deal) -- A Munich court Thursday confirmed a civil lawsuit had been filed against Vodafone Group (VOD) related to its 7.7 billion euro acquisition ($10.4 billion) of German cable company Kabel Deutschland Holding but said it couldn't disclose the plaintiff, which is believed to be New York hedge fund Elliott Management.

The Munich regional court said Vodafone has until October to respond before a hearing date, which is likely to be next year, can be set.

The confirmation comes amid media reports that Elliott is hoping to squeeze more cash out of Vodafone after the hedge fund, led by Paul Singer, gathered a 13.5% Kabel Deutschland stake during Vodafone's offer.

Elliott openly criticized the 84.53 euro per-share price and now has a valuation from German M&A consultancy Rodl & Partner that claims shareholders should receive between 225 euros and 275 euros per share, Manager Magazin reported.

The New York investor is becoming a regular on Germany's dealmaking scene. The hedge fund last year prohibited San Francisco healthcare giant McKesson Corp. from buying and delisting German drug distributor Celesio AG. McKesson this year was able to buy a majority of Celesio but only after reaching an agreement with Elliott, which remains invested.

The fund is apparently banking on German securities regulations that allow holdout shareholders to demand a fresh valuation on the target before they are forced out. The valuations have often led to surprising bonuses for patient shareholders.

Singer is also reportedly part of a similar lawsuit surrounding Terex Corp.'s 936 million euro acquisition of control of Germany's Demag Cranes AG. That suit mimics the suit filed against Vodafone.

Elliott is getting some backing from the German securities market: Kabel Deutschland shares are currently trading at 108.10 euros, though the buyers are likely to be other investors making the same bet as Elliott.

Rodl refused to comment and Elliott didn't respond to a request for comment.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs