Liberty Global Seeks Consolidation in International Markets, Germany

By Archibald Preuschat

Liberty Global Inc. (LBTYA) is interested in further market consolidation internationally, including in Germany, chief executive Michael Fries told Dow Jones Tuesday at the cable and satellite exhibition ANGA COM.

"We want to profit from economies of scale in all countries in which we do business, not just Germany," Mr. Fries said.

But in Germany, where Liberty Global owns the nation's second-largest cable operator, KabelBW, further consolidation is beginning to look difficult. "In Germany we're running into several growth-related challenges," Mr. Fries explained, without going into details about specific purchases.

For months market speculations have been about that Liberty Global is interested in Germany's largest cable operator, Kabel Deutschland AG (KD8.XE).

Vodafone Group PLC (VOD) is likewise interested in the cable company, and Monday Dow Jones reported that Vodafone revived its evaluation of a takeover of Kabel Deutschland.

Vodafone's rekindled interest in Kabel Deutschland comes as a surprise after it made a deal with Deutsche Telekom AG (DTE.XE) in mid-May to use the German incumbent's network to offer its clients broadband and television services, which many analysts thought thereby rendered an acquisition of Kabel Deutschland unnecessary.

Liberty Global proved its interest in international markets in the last months, purchasing Virgin Media Inc. (VMED) in the U.K. and a stake in Dutch competitor Ziggo NV (ZIGGO.AE).

Write to Archibald Preuschat at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires