* Kabel Deutschland is in no defence mode - source
* Vodafone offer could be worth 10 billion euros
* Kabel Deutschland shares flat
FRANKFURT, Feb 21 Kabel Deutschland
has no plans to fend off a potential 10 billion euro ($13
billion) takeover offer from British mobile operator Vodafone
, two people close to Germany's biggest cable company
"Kabel Deutschland is in no defence mode," one of the
sources said on Thursday, while the other person said: "Kabel
Deutschland will assess any offer with an open mind".
Kabel Deutschland declined to comment.
Vodafone has hired Goldman Sachs to advise it on
options about a bid for the German cable group, a person with
direct knowledge of the matter told Reuters on Tuesday.
Kabel Deutschland shares were flat at 68.00 euros at 1410
GMT. They closed at 63.60 euros on Feb. 12, the day before the
first report of a possible deal.
Kabel Deutschland said on Wednesday it will raise the
dividend for its current fiscal year by 67 percent, a move
traders and investors saw as a first defensive jab aimed at
warding off Vodafone. Analysts have estimated Vodafone would
have to stump up about 10 billion euros for any bid.
Kabel Deutschland's success in the broadband market could
appeal to Vodafone, the biggest mobile operator in Germany.
Vodafone needs to expand into more profitable areas, such as
cable, as it faces a squeeze between low-cost mobile challengers
and telecom and cable rivals increasingly pushing discounted,
all-included bundles of mobile and other services.