German cable operator Kabel Deutschland (KDG) has announced that it will launch a EUR1 billion (USD1.4 billion) initial public offering (IPO), Reuters reports. KDG revealed that the floatation will probably only involve shares held by the current owners, which will be listed on the Frankfurt Stock Exchange. A source familiar with the deal has said that private equity owners Providence Equity Partners and the management would sell at least a combined 25% stake, with bookbuilding expected to begin in mid-March. Earlier this week, CommsUpdate reported that Providence had dropped plans for an outright sale of KDG in favour of an IPO, after offers for the company fell short of expectations. BC Partners and CVC Capital Partners made a joint bid for KDG, while Carlyle Group, Advent International, Hellman & Friedman and Bain Capital also submitted offers thought to be in the region of EUR5 billion and EUR5.5 billion. KDG is 88% owned by Providence Equity, with the remainder held by Ontario Teachers’ Pension Plan (8%) and company management (4%).