RealTime IT News

German Cable Operator Sold to DB Investor

In the context of the current scramble of Internet companies for a share of Europe's broadband potential, the sale of cable network operator TeleColumbus to DB Investor, Deutsche Bank's holding company, is a high profile move.

The company, which is jointly owned by German energy companies RWE and Veba, will be officially sold on July 1.

The selling price, including liabilities, will be DEM 1.45 billion (US$805.5 million). Deutsche Bank is also a candidate for Deutsche Telekom's cable, which will reportedly be up for grabs soon.

Recently, Microsoft and Bertelsmann have also shown manifest interest in Deutsche Telekom's cable holdings.

The sale will net RWE and Veba a big slice of added value for their 100 percent stake in TeleColumbus, which is held jointly with their telco subsidiary Otelo. Otelo's wireline subsidiary was recently sold to Mannesmann's Arcor.

RWE and Veba are taking advantage of the new dynamism in the German cable market to considerably boost their earnings.

The sale of the burgeoning cable TV activity, added to Otelo wireline business, means that RWE's remaining telecom business run by RWE Telliance is continuing to focus on strong areas of growth. With its 1.7 million clients, TeleColumbus is the second largest cable operator after Deutsche Telekom.