Vodafone has offered to pay over $2 billion to buy out the remaining minority shareholders in Kabel Deutschland Holding (KDG) in a bid to end a long-running dispute with the hedge fund Elliot Asset Management.
Vodafone bought a 76% share in KDG in 2013, securing Germany’s largest cable operator for €7.7 billion. It said Tuesday that 17% of shareholders advised by Elliott, DE Shaw and UBS O’Connor had accepted the offer for which the British concern would pay €2.12 billion.
The companies had also agreed not to take further legal action following a ruling by a Munich court in November last year that said the original price paid by Vodafone was “adequate” given the earnings potential of the cableco.
The ruling resulted in a series of appeals by the minority shareholders that could have taken several years to complete.
A condition of the buyout is that the individual actions are dropped.
