German Cable Operator Sold to DB Investor
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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 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.
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.