06 October 2016

Kabel Deutschland Holding AG withdraws appeal against a second special audit

On 9 June 2016, the District Court I of Munich (Landgericht München I) decided to approve a second special audit regarding malpractice and alleged unlawful acts in the case of the take-over of Kabel Deutschland Holding AG by Vodafone. Like in the case of the first special audit, the application was filed by Elliott, an activist shareholder. After the decision of Kabel Deutschland Holding AG to withdraw its appeal against the ruling, the decision became binding and the special auditor, Martin Schommer, can now start his further investigations.

Since the first special audit which presented results of the investigation period only until 31 March 2013, Schommer came, inter alia, to the following result: The internal company evaluation of Kabel Deutschland Holding AG and its investment banks was resulting to a significantly higher value of the company in comparison to the price offered for the acquisition by Vodafone.

The objective of the second special audit will be a deeper investigation into the behaviour of the management board of Kabel Deutschland Holding AG after 31 March 2013. According to Elliot, further “enlightenment” in the case is needed.

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