Malone’s Liberty Global Said Approaching Ziggo Agreement

Liberty Global Plc is putting the final touches on an acquisition of Dutch broadband provider Ziggo NV as the cable company expands its European operations, according to people with knowledge of the matter.

Liberty Global, controlled by U.S. billionaire John Malone, and Ziggo aim to announce a friendly deal as early as the middle of this month, and are hammering out a final acquisition price and other terms, the people said, asking not to be identified discussing private negotiations.

Ziggos shares rose 3.6 percent in Amsterdam to 33.77 euros, valuing the company at about 6.75 billion euros ($9.2 billion).

Outstanding issues include determining whether Ziggo Chief Executive Officer Rene Obermann, a former CEO of Deutsche Telekom AG who started this month, will stay at the Dutch company if it is bought by Liberty, the people said. Liberty Global already owns about 30 percent of Ziggo, which it has gradually amassed. The companies are also discussing how to protect jobs once Ziggos operations are combined with Liberty Globals existing Dutch unit, UPC, the people said.

Malone, with a net worth of about $7.3 billion according to the Bloomberg Billionaires index, has built a European cable and broadband empire through acquisitions in countries including the U.K. and Germany, taking advantage of rising demand for high-speed Internet and pay TV.

Ziggos shares rose as much as 2.7 percent in Amsterdam, and traded up 2.3 percent to... Read More

Ziggos shares rose as much as 2.7 percent in Amsterdam, and traded up 2.3 percent to 33.33 euros at 11:37 a.m., valuing the company at about 6.7 billion euros ($9.1 billion). Close

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Ziggos shares rose as much as 2.7 percent in Amsterdam, and traded up 2.3 percent to 33.33 euros at 11:37 a.m., valuing the company at about 6.7 billion euros ($9.1 billion).

Liberty Global last year bought Virgin Media Inc., a U.K. pay-TV provider, for about $16 billion, putting it in head-to-head competition with Rupert Murdochs British Sky Broadcasting Plc.

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Malone’s Liberty Global Said Approaching Ziggo Agreement