Kabel Deutschland set to acquire Tele Columbus?

German cable operator Kabel Deutschland has allegedly fought off competition from Deutsche Telekom (DT) and US firm Liberty Global Inc (LGI) for the purchase of regional cableco Tele Columbus, according to Financial Times Deutschland, as reported by news agency Reuters. Kabel Deutschland will likely have to make concessions to competition authorities in order to pave the way for regulatory approval of the deal, the report added, citing an industry source. Earlier this year, Tele Columbus’s owners, which comprise a number of funds including York Capital and Golden Tree Asset Management, hired Rothschild to organise the sale of the struggling cableco, which could be valued at EUR600 million-EUR800 million (USD785 million-USD1.05 billion), according to bankers. TeleGeography’s GlobalComms Database states that roughly 100 creditors of Tele Columbus, including York Capital, Alcentra, GoldenTree Asset Management and the Bank of Ireland, took over the firm from Orion Cable (a subsidiary of Luxembourg-based investors Escaline) in a debt-for-equity swap in December 2009. In the past, a number of operators, including fixed line company Versatel and Kabel Deutschland, have expressed an interest in acquiring Tele Columbus because of its two million-strong client base and its network with direct access to households.