Telecommunications company Vodafone has secured approval from about 75% share holders to acquire German ISP and cable company Kabel Deutschland.
Following the deal, valued at around €7.7bn (£6.4bn), Vodafone said it plans to offer better television and fixed-line services in the European market.
The move will allow Vodafone to offer higher-speed broadband Internet services, while avoiding the fees it pays to Deutsche Telekom for using its network.
The deal still has to be approved by remaining shareholders in order to fully acquire the cable company.
According to the reports, Kabel Deutschland’s largest shareholder Elliott Management along with shareholder hedge funds Davidson Kempner and York Capital is planning to take legal action against Vodafone to force it to offer a higher price in the next stage of the agreement.
Currently, Elliott Management holds 10.9% stake in the cable company, while Davidson Kempner owns 3.4% and York Capital also holds a Kabel Deutschland stake.
In early September, Vodafone signed an agreement to sell its stake in US operator Verizon Wireless for $130bn in order to support its business expansion plans in the growing European market.
