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Kabel Deutschland reviewing request for EGM on Vodafone takeover

Published 12/01/2015, 19:01
Updated 12/01/2015, 19:10
© Reuters. A man passes the company logo of German cable television group Kabel Deutschland in Unterfoehring
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FRANKFURT (Reuters) - Kabel Deutschland said it had received a request from activist investor Elliott Management to hold an extraordinary shareholders' meeting to scrutinise management's conduct during a takeover by Vodafone.

In a regulatory filing on Monday, Kabel Deutschland said it had received a request to host an extraordinary shareholder meeting to vote on the appointment of special auditors on matters related to the takeover by Vodafone.

"The company will review the request and invite to a general meeting in case the legal requirements are met," Kabel Deutschland said.

Elliott Management Corporation, which holds 13.5 percent in Kabel Deutschland according to Thomson Reuters data, wants to appoint an independent auditor to investigate whether the cable company's management informed investors accurately and in a timely manner about the takeover, a spokesman for the investor said on Monday.

An audit report published in December concluded that Kabel Deutschland was worth almost a quarter more than what Vodafone had offered.

Having secured a stake of more than three quarters in Kabel Deutschland, Vodafone about a year ago offered 84.53 euros per share ($104) in cash to remaining shareholders as part of a so-called domination agreement.

But not all shareholders were happy with this price. Elliott and investment management firms Davidson Kempner and York Capital are suing Vodafone for more for their holdings.

© Reuters. A man passes the company logo of German cable television group Kabel Deutschland in Unterfoehring

Vodafone said in December Elliott's claims were unrealistic, adding that its offer was accepted by 76.6 percent of Kabel Deutschland's shareholders.

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