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Microsoft eyes German cable
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May 20, 1999: 7:41 a.m. ET
Software publisher, Bertelsmann seek portion of Deutsche Telekom network
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LONDON (CNNfn) - Microsoft and German media giant Bertelsmann have joined forces to bid for part of the cable television network owned by Deutsche Telekom, it was announced Thursday.
"It is true we are in talks with Microsoft on buying part of the Telekom cable network," Bertelsmann Chairman Thomas Middelhoff said in a speech delivered to the German Advertising Federation in Berlin, Reuters reported.
His comments validate German press reports from earlier this week suggesting the two were joining forces, possibly with Deutsche Bank involved as well, to bid for the network.
Microsoft has already taken a significant stake in the British cable company Telewest (TWT), and is expected to play a pivotal role in the restructuring of the U.K. cable industry.
The reports indicated the partners were considering a price of up to10 billion marks ($5.44 billion) for the network.
Industry sources told CNNfn.com that some valuations for the business go as high as 30 billion marks.
Deutsche Telekom operates the world's largest cable television network with more than 17 million subscribers.
Officials at privately held Bertelsmann refused to add to Middelhoff's comments, although they did confirm the company is interested in the broadband delivery of its content.
Deutsche Telekom confirmed its plans to sell the cable network, and said it had completed a roadshow to investors. It would not comment on the identity of potential bidders, but said a deal was likely in a few months.
A spokesman for Microsoft (MSFT) said the company would not comment on "rumor and speculation".
Deutsche Telekom stock surged almost 4 percent to 37.03 euros In Frankfurt Thursday.
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