Lining up for Kabel

27 January 2010 By Una Galani Follow @ugalani

Banks appear to be lining up to back the biggest buyout in two years a 5 bln euro bid for Kabel Deutschland. It’s a great business: little competition, good growth and hefty margins. Plus bond investors are hungry for utilitystyle assets, so refinancing loans should be easy.

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Private equity groups including CVC Capital Partners and Carlyle are lining up banks to finance a 5 billion euro ($7.4 billion) bid for Kabel Deutschland, Germany's leading cable operator, according to the Financial Times.

Advent International and BC Partners are among other private equity firms weighing a possible bid for the cable firm, which is currently 88 percent owned by Providence Equity Partners.

Providence have been exploring a possible initial public offering of the cable operator. Deutsche Bank, JP Morgan, Morgan Stanley and UBS are acting as bookrunners, according to a person familiar with the situation.

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