Liberty Global Mulling Bid for KabelBW

U.S. cable operator Liberty Global is mulling a big for private equity-owned Kabel Baden-Wuerttemberg GmbH & Co KG, a German cable operator, Reuters reported, citing an article from Bloomberg. KabelBW is owned by Swedish private equity firm EQT. Liberty Global has hired Goldman Sachs to advise on a potential offer, Bloomberg reported.

(Reuters) – U.S. cable operator Liberty Global Inc (LBTYA.O) is considering a bid for Germany’s No. 3 cable operator, Kabel Baden-Wuerttemberg GmbH & Co KG [EQTPRK.UL], Bloomberg reported on its website on Tuesday, citing people with knowledge of the deliberations.

Liberty global could combine its Unitymedia GmbH with Kabel and has hired Goldman Sachs (GS.N) to advise on a possible bid, Bloomberg reported.

Liberty spokeswoman Hanne Wolf said the company does not comment on market rumors.

KabelBW, owned by Swedish private equity firm EQT, is Germany’s third-largest cable operator, with 2.3 million customers last year.

EQT has given investment banks the mandate to either sell or float the company, people familiar with the matter told Reuters last month.

An EQT spokesman could not immediately be reached for comment.

EQT bought KabelBW from U.S. investment group Blackstone (BX.N) in April 2006 for about 1.3 billion euros and has invested around 500 million euros in network expansion. (Reporting by Nick Zieminski; Editing by Leslie Adler)