Vodafone group is looking forward to acquire the German cable operator to expand its broadband and TV market. According to reports, Vodafone Group Plc approached Kabel Deutschland Holding AG to discuss the plans of acquiring the German cable operator.

Confirmation of preliminary approach in a statement today led to sharp increase of 9.5% in Kabel Deutschland shares. Kabel Deutchland has the market value of around seven billion Euros.

Bloomberg News reported yesterday that Vodafone contacted Kabel Deutschland to strike a deal within the past week.

If the move gets successful, Vodafone will be able to offer services to 8.5 billion connected households. Moreover, it would provide an opportunity to Vodafone to complement its mobile offerings with fast fixed-line services. The deal between Vodafone and Kabel Deutschland will prevent the asset from being purchased by John Malone's Liberty Global Inc (LBTYA). LBTYA has also shown interest in the purchase.

"They need to offer quad play to keep their customers for a longer period of time. As you start to bundle, you typically see the lifetime value of a customer increase by 50 percent", Chetan Sharma, an independent wireless analyst, said in a telephone interview.

According to an anonymous source, the two have not initiated talks as the price quoted by Vodafone was too low for Kabel Deutschland, but discussions could restart once Vodafone comes with a price that would please the company.