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Kabel Deutschland Buy in Jeopardy

UNTERFOEHRING, Germany -- The German Federal Cartel Office (‘FCO’) today informed Kabel Deutschland (‘The Company’) of its preliminary assessment on the remedy package offered on January 22, 2013. The FCO judges the proposed divestment of network assets as insufficient to overcome its concerns. Kabel Deutschland offered the disposal of Tele Columbus networks in the cities of Berlin, Dresden and Cottbus. The FCO, however, requires the divestment of approximately 60% of the Tele Columbus networks in Eastern Germany – twice as many as offered by Kabel Deutschland. The Company regrets the Cartel Office’s assessment. Kabel Deutschland’s remedy offer was far reaching and went to the commercial limit. The envisaged transaction would have benefited infrastructure competition as well as consumers. As a result of the envisaged acquisition, over 900 thousand households in Eastern Germany would have obtained first-time access to high speed internet over cable. In addition, Kabel Deutschland would have become active outside its current footprint by entering into competition for contracts with housing associations in North Rhine-Westphalia and Hesse. Kabel Deutschland GmbH
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