United Internet mulls Versatel takeover

15 Aug 2014

United Internet, a provider of broadband and telephony services in Germany under the brand 1&1, is considering a takeover of telecoms company Versatel, the firm’s chief executive Ralph Dommermuth told Reuters. United Internet already owns a 25% stake in Versatel, which it purchased for EUR60 million (USD80 million) in 2012, while the remainder is held by US private-equity firm Kohlberg Kravis Roberts & Co (KKR). ‘This is an option we are considering … It does not often happen that the second largest German fibre-optic cable network comes on the block,’ Dommermuth said. Versatel’s services are available in twelve of the 16 German states and over 230 cities, including 33 of the largest 50, while its fibre-optic network spans around 53,000km. UK-based Vodafone Group is allegedly one other serious bidder for Versatel, while the firm’s private and wholesale telecom operations could also attract the likes of Telefonica.

Germany, 1&1 Versatel, United Internet (1&1)