NYT – Vodafone is right to defy the hedge funds over its $10 billion bid for Kabel Deutschland. The London-listed mobile giant says it won’t alter its agreed offer for the German cable company, even after Elliott Management and Davidson Kempner amassed possible blocking stakes of 10.9 percent and 3.4 percent. Vodafone’s resolve makes sense – a failed deal would hit everyone. But even if the offer succeeds, a fight looms over the remainder of Kabel Deutschland’s shares.
With its tender expiring on Sept. 11, Vodafone says it will not sweeten its 84.50 euro-a-share offer, or lower its 75 percent acceptance threshold.
