PE houses pitch low for German cable assets

Deutsche Telekom’s cable business may be sold to a private equity buyer for less than E3bn.

Rothschild, the investment bank running the auction of Deutsche Telekom’s television cable network, has received five indicative bids from private equity groups valuing the assets at between E2bn-E3bn, according to the Financial Times.

If sold at a price within this range, the network would fetch considerably less than the E5.5bn Liberty Media had offered to pay DT before the German Cartel Office blocked the bid earlier this year.

Three of the contenders are consortia. Telecoms specialist Providence Equity is bidding alongside Apax Partners, and Warburg Pincus is working with CVC Capital Partners, reported the newspaper. Goldman Sachs Capital Partners’ effort is supported by Permira.

Hicks, Muse, Tate & Furst and BC Partners are expected to compete on their own. Firm offers for the network will have to be submitted by the end of September.

Deutsche Telekom is currently looking to sell assets in a bid to take debt below the E50bn threshold. In March, the group’s liabilities stood at E67bn.