Paul Singer’s Elliott Management has increased its stake in Kabel Deutschland Holding AG (FRA:KD8) (ETR:KD8) to 10.9% of the company’s equity, Harro ten Wolde of Reuters reports. Kabel Deutschland Holding AG (FRA:KD8) (ETR:KD8) is a hot and heavy stock right now, as Vodafone Group Plc (NASDAQ:VOD) (LON:VOD) has eyes set on buying it. Just yesterday Vodafone urged Kabel Deutschland’s shareholders to accept the $10 billion buyout offer.

Kabel Deutschland

Usually when Singer increases his position in a company, which was more than doubled in this instance from 5.1% to 10.9%, those are tidings of an activist run coming up. Since it seems Vodafone Group Plc (NASDAQ:VOD) (LON:VOD) is finding it hard to have its offer accepted by the German cable company, Elliott could side with either party.

Other major shareholders of Kabel Deutschland Holding AG (FRA:KD8) (ETR:KD8) include Davidson Kempner with a 3.4% position and Barclays’ recently increased 5% position.

Check the latest on Vodafone selling its stake in Verizon for $130 billion here.

Vodafone faces resistance from Kabel Deutschland’s shareholders

Vodafone needs a majority vote of 75% to get its 7.7 billion euros or a $10 billion offer approved by the German company. Financial Times reported yesterday that Vodafone’s plans to buy the company could be in jeopardy as its sources say that achieving the 75% vote may not be possible for the British telecom major. The German company is set to take a vote on September 11 and there is no additional acceptance period if the deal falls out. Buying Kabel Deutschland Holding AG (FRA:KD8) (ETR:KD8) provides Vodafone Group Plc (NASDAQ:VOD) (LON:VOD) with additional exposure in the European region, however if it doesn’t work out, it will have to settle with renting fixed lines from Deutsche Telekom AG (FRA:DTE) (PINK:DTEGY) (ETR:DTE) and be a competitor of Kabel Deutschland Holding AG (FRA:KD8) (ETR:KD8), Germany’s largest operator.

So far Vodafone Group Plc (NASDAQ:VOD) (LON:VOD) has the support of only 11.8% of the company’s shareholders, which is way off the 75% majority vote it needs to approve the deal. Vodafone’s offer stands at 84.5 euro a share as was put up in June, offering a 40% premium to Kabel Deutschland Holding AG (FRA:KD8) (ETR:KD8)’s share price at that time.