Telefónica and Vodafone to bid for German broadband firm

06 April 2009

BERLIN: Telefónica, the Spanish-headquartered telecoms giant, and Vodafone, its UK-based counterpart, are both said to be lining up bids for Hansenet, a German broadband company currently owned by Telecom Italia.

The two potential buyers do both run broadband services in Germany already, but trail the market leader, Deutsche Telekom.

Hansenet is valued at €1bn ($1.3bn; £905m) by UBS, the financial services company, and posted revenues of €1.2bn, and profits of €238m, last year.

Telecom Italia is thought to be keen to sell the business in order to help address its debts of €34bn.

Telefónica owns a 10% stake of Telecom Italia, and Hansenet already utilises the Spanish company's German infrastructure for its mobile phone network.

Data sourced from Financial Times; additional content by WARC staff