* Offer period to run until Sept. 30, 2200 GMT
* Legal action by hedge funds looms
FRANKFURT, Sept 16 Vodafone has secured
76.48 percent of shares in Kabel Deutschland for its
7.7 billion euro ($10 billion)offer for Germany's largest cable
company, the telecom operator said on Monday.
Vodafone had already said on Thursday it had reached the 75
percent minimum acceptance required.
The British company, which this month agreed the sale of its
stake in U.S. operator Verizon Wireless for $130 billion, wants
to buy Kabel Deutschland to offer more television and fixed-line
services in Germany, its largest European mobile market.
The deal still needs regulatory clearance from the European
Commission, with the completion of a first review expected by
Vodafone said that Kabel Deutschland shareholders who have
not yet tendered their shares can do so in the next two weeks.
The offer period will end on Sept. 30 at 2200 GMT.
After completion of the deal, Vodafone said it intends to
enter a so-called control or domination agreement with Kabel
This would enable Vodafone to determine Kabel Deutschland's
strategy and access its cash flows. This is possible under
German law once an buyer holds 75 percent of a company.
This will likely be used by some hedge funds, who have built
up stakes in Kabel Deutschland in the few past weeks, to try to
press more money out of Vodafone, sources familiar with the
matter told Reuters last week.
Hedge funds including Elliott Management, Davidson Kempner
and York Capital plan legal action in the hope that a court will
force Vodafone to offer a higher price in the next stage of the
buyout, the sources have said.
Although Elliott tendered some of its shares, its stake in
Kabel Deutschland remains above 10 percent, a person familiar
with the deal told Reuters on Monday. Elliott had 10.9 pct as of
early last week.
Elliot declined to comment.
The tactic that the hedge funds are pursuing in the Kabel
Deutschland deal replicates what Elliott did in the takeover of
German crane maker Demag by U.S.-based rival Terex two
years ago. That court decision is still pending.