Bid war looms over Germany's Kabel

Shares in the German telecoms company Kabel Deutschland jumped nearly 4 per cent yesterday on the prospect of a €7.5bn (£6.4bn) bidding war after US giant Liberty Global entered the fray against Vodafone.

Those close to the British mobile giant claimed Liberty's approach looked like a spoiler, and noted there could be big regulatory hurdles because the US group already owns two big German telecom subsidiaries.

Vodafone could also pay in cash whereas Liberty is thought to be offering to pay largely in stock.

Vodafone, which made an initial approach last week, was poised to improved its offer, even before Liberty signalled its interest.Vodafone and Liberty declined to comment.