LONDON (Thomson Financial) - The telecoms regulator on Thursday fined the Greek unit of UK mobile giant Vodafone 19.1 mln eur for violating network regulations in a wire-tapping scandal that rocked the country last year.

The fine is the second handed to Vodafone Hellas over the case after a 76 mln eur penalty levelled by Greece's communication privacy watchdog last December.

Some 100 Vodafone cellphones in February 2006 were found to have been compromised by an illicit network that tapped sets used by Greek Premier Costas Karamanlis, his wife and several ministers from June 2004 to March 2005.

The tapping used software slipped into Vodafone's network by unknown perpetrators to illegally activate an Ericsson-made module permitting call interception.

On Thursday, the national telecommunications regulator EETT accused Vodafone of breaching regulations on the protection of telecommunications privacy, network maintenance and quality, and consumer protection.

The company rejected last December's fine as 'illegal, unfair and baseless.'

A Greek parliament committee collecting evidence on the case last November noted the involvement of three employees of telecoms giants Ericsson Hellas and Vodafone Greece, identified only by their initials.

'The whole system could not operate without Ericsson know-how and without access from within (Vodafone),' the report said.

The Greek branch of Swedish telecom equipment giant Ericsson has also been fined 7.36 mln eur over the case.

The parliamentary committee did not rule out the involvement of other people operating outside Greece.

The Greek justice department has opened an investigation into the case but nobody has yet been charged.

Days before the affair came to light, a senior Vodafone expert was found hanged inside his home.

The death of Costas Tsalikidis, manager of Vodafone Greece's network planning section, was linked to the case and his family suspects he was murdered.

Vodafone UK Capex to increase by more than £300 million this year

Telecom Lead Europe: Vodafone UK is planning to increase Capex (capital expenditure) by more than £300 million in 2014, up from £600 million last year.

TMF has it as a sell, mainly because of uncertainty about what will happen to the Verizon cash.

what cash?

The pot of gold at the end of the rainbow, which may disappear as rainbows always do.

TOK dream on!

VOD go's Ex. Divi this week paying a rather attractive 6.92p.=3.60%.

Vodafone makes informal bid for Kabel Deutschland - Bloomberg

Wed Jun 12, 2013 5:13am IST
REUTERS - Vodafone Group Plc (VOD.L) has made an informal takeover bid within the past week for Germany's biggest cable company, Kabel Deutschland Holding AG (KD8Gn.DE), Bloomberg reported, citing people with knowledge of the matter.

Takeover talks have not formally begun because Kabel Deutschland believes the price Vodafone suggested was too low, Bloomberg said, citing people who were not authorised to speak publicly on the matter. (link.reuters.com/byr78t)

Sources told Reuters in February that Vodafone was weighing a 10-billion-euro bid for the German cable company to expand its services in Europe's biggest economy.

However, analysts had expected talks to die down after Vodafone struck a deal last month with Deutsche Telekom AG (DTEGn.DE) allowing it to offer pay-TV over high-speed broadband to its German customers.

A Vodafone spokesperson declined to comment and Kabel Deutschland was not immediately available for comment outside of business hours.

CONFIRMS PRELIMINARY APPROACH TO KABEL DEUTSCHLAND

Vodafone Group Plc notes the recent speculation regarding a potential offer for Kabel Deutschland Holding AG ("KD") and confirms that it has made a preliminary approach to KD regarding a possible offer for the company. There is no certainty that any offer will ultimately be made nor as to the terms on which any such offer might be made.

Update on the earlier link - Vodafone moves for Kabel Deutschland in quad-play push

LONDON/FRANKFURT | Wed Jun 12, 2013 2:39pm BST
(Reuters) - British mobile firm Vodafone (VOD.L) has approached Kabel Deutschland (KD8Gn.DE) about a bid for Germany's biggest cable operator that could top 7 billion euros (5.9 billion pounds) and help fend off competition in its most important European market.

The world's second-biggest mobile operator has long been linked with a move for the cable group as it seeks to meet the demands of customers who increasingly want to take television, broadband, mobile and fixed-line services - so-called "quad play" - from one provider.

Deutsche Bank Hold 177.55 181.00 216.00 216.00 Reiterates

Jefferies International Hold 177.45 179.00 179.00 Reiterates

Group PLC HSBC Overweight 177.45 230.00 230.00 Retains

JP Morgan Cazenove Overweight 172.95 225.00 - Reiterates

Liberty Global Makes Bid for Kabel Deutschland

Liberty Global Plc (LBTYA), the cable company controlled by John Malone, made a preliminary offer for Kabel Deutschland Holding AG, pitting it against Vodafone Group Plc (VOD) for control of Germany’s largest cable provider, with a market value of 7.3 billion euros ($9.8 billion).

Vodafone raises Kabel Deutschland offer after rival bid: report

(Reuters) - Britain's Vodafone Group Plc has raised its preliminary offer to buy Germany's largest cable operator, Kabel Deutschland Holding AG, a day after U.S. media group Liberty Global Plc made a rival bid, Bloomberg reported on Tuesday, citing people familiar with the bid.

Bloomberg reported that Vodafone told Kabel Deutschland this week that it would be willing to pay 85 euros a share compared with its initial offer of 80 euros to 82 euros for the German company.

Vodafone is said to be studying Kabel Duetschland's books before making an official offer, Bloomberg said.

Liberty Global, which owns Unity Media, Germany's second biggest cable operator, made an 85 euro a share offer days after the British mobile company said it was in talks about a deal.

Vodafone's revised offer matches the Liberty Global bid valuing Kabel Deutschland at 7.5 billion euros ($10.04 billion).

Intention to acquire Kabel Deutschland

Key highlights

· Vodafone announces its intention to acquire Kabel Deutschland in a transaction delivering Kabel Deutschland shareholders €87 per share in cash (the "Transaction"), valuing the entire fully diluted ordinary share capital of Kabel Deutschland at €7.7 billion (£6.6 billion).

· The Transaction will be implemented as a voluntary public tender offer by Vodafone's wholly-owned subsidiary Vodafone Vierte Verwaltungsgesellschaft mbH for €84.50 per share in cash (the "Offer") plus the payment of the €2.50 dividend announced by Kabel Deutschland on 20 February 2013.

· The Management and Supervisory Boards of Kabel Deutschland welcome the Transaction. Subject to their review of the formal Offer Document, the Management and Supervisory Boards intend to recommend Kabel Deutschland shareholders accept the Offer, and the Management Board members intend to accept the Offer in respect of their entire beneficial shareholdings.

· The combination of Vodafone and Kabel Deutschland will create a leading integrated communications operator, with €11.5 billion (£9.8 billion) of pro forma revenues in Germany, offering consumer and enterprise customers premium unified communications services. Following completion of the Transaction, Vodafone will have 32.4 million mobile, 5.0 million broadband and 7.6 million direct TV customers in Germany.

· Vodafone sees significant potential to accelerate the growth in Vodafone's and Kabel Deutschland's broadband, telephony and TV businesses by leveraging Vodafone's leading brand and extensive distribution and by cross-selling to each company's customer base.

· Vodafone's intention is that Kabel Deutschland's management will be responsible for the combined consumer fixed line business throughout Germany. The combined management team of Vodafone and Kabel Deutschland will have significant expertise across all segments of fixed and mobile communications and TV.

· Vodafone expects in-market cost and capex synergies with an annual run-rate by the fourth full year post completion exceeding €300 million (£260 million) before integration costs, equivalent to a net present value exceeding €3.0 billion (£2.6 billion) after integration costs.

· Vodafone believes that there is significant upside potential from revenue synergies, including a net present value exceeding €1.5 billion (£1.3 billion) from cross-selling and improved customer loyalty.

· The Transaction values Kabel Deutschland at a multiple of 13.8x FY2014 OpFCF based on consensus forecasts, adjusted for Kabel Deutschland's pull forward capex programme (Project Alpha) and run-rate cost and capex synergies before integration costs1.

· The Transaction comfortably meets Vodafone's M&A criteria, including all synergies, and is expected to be accretive to EPS and FCF per share from the first and second full year post completion respectively, after cost and capex synergies and before integration costs (which are expected to total €300 million in the first four years).

Nomura Buy 175.95 175.90 195.00 230.00 Upgrades

Paribas Underperform 175.95 175.90 193.00 193.00 Reiterates

Bank of America Merrill Lynch Buy 186.35 186.35 220.00 220.00 Reiterates

Deutsche Bank Buy 186.35 186.35 216.00 217.00 Upgrades

Morgan Stanley Overweight 192.10 210.00 210.00 Reiterates

JP Morgan Cazenove Overweight 192.10 225.00 230.00 Reiterates

Interim Management Statement

Interim management statement for the quarter ended 30 June 2013

19 July 2013

· Group service revenue including joint ventures1,2 declined 3.5%*; or 1.3%* excluding joint ventures

· Continued strong service revenue growth in emerging markets3: Turkey 15.5%*, India 13.8%*, Vodacom 3.2%*

· Increased competitive intensity in Northern and Central Europe: Germany -5.1%*, UK -4.5%*

· Conditions in Southern Europe remain difficult: Italy -17.6%*, Spain -10.6%*

· Verizon Wireless ('VZW') service revenue remained strong, increasing 7.2%*

· Vodafone Red in 16 markets; 5.2 million customers; mobile in-bundle customer revenue, including joint ventures1, +9.5%*

· Enhanced unified communications capability: acquisition of Kabel Deutschland in Germany expected to close in calendar Q4; vertical fibre access agreement in Spain; wholesale fibre access agreement in Italy

· 4G services launched in Spain, Australia and Czech Republic; 4G now available in ten markets. Group data usage +60%

· Net debt including joint ventures1 £24.9 billion after £2.1 billion VZW dividend and completion of £1.5 billion share buyback. Net debt, excluding joint ventures1, was £23.0 billion.

Vodafone says would consider Verizon offer

LONDON | Tue Jul 23, 2013 11:37am BST
(Reuters) - The chairman of the world's second-largest mobile operator Vodafone (VOD.L) said that the group would seriously consider any offer for its stake in its U.S. joint venture Verizon Wireless, but that there was nothing new to announce on Tuesday.

Vodafone's partner Verizon Communications (VZ.N) has made little secret of its desire to buy out Vodafone in a multi-billion dollar deal that would be one of the largest of all time.

The company's chairman, Gerard Kleisterlee, was speaking at Vodafone's annual meeting in London.

Espirito Santo Execution Noble Buy 195.13 220.00 220.00 Reiterates

Citigroup Buy 195.13 215.00 215.00 Reiterates