German cable pact spurs Liberty stock


Liberty Media Corp. stock was up 1.32% to $15.40 on word Tuesday that it would acquire six regional cable television companies from Deutsche Telekom AG for about $5 billion.

Liberty will pay a combination cash, common stock and 10-year 7.125% unsecured notes. UBS Warburg analyst Christopher Dixon said the deal makes Liberty one of the largest broadband operators in the world and the largest cable operator in Europe reaching nearly 20 million subscribers.

The company intends to seek partnerships with other operators in order to secure the best pricing possible when buying equipment and program services for the cable systems. - Steve McClellan