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Monday, January 27, 2014

Liberty Global buys Ziggo to expand European cable empire, (NASDAQ: LBTYA)

U.S. cable group Liberty Global has won its 10-month pursuit of Ziggo with a deal that values the Dutch operator and its debt at 10 billion euros ($13.7 billion) and expands billionaire John Malone's vast European cable empire.Ziggo rejected an initial offer from Liberty last October as too low, seven months after the U.S. group controlled by Malone first bought shares in its Dutch target.On Monday, Ziggo accepted a cash-and-shares offer at 34.5 euros per share, a 22 percent premium to Ziggo's share price just before Liberty's initial bid.Liberty has been driving consolidation of the European cable market to profit from rising demand for faster Internet and digital television.

Shares of LBTYA fell by 2.74% or $-2.28/share to $80.99. In the past year, the shares have traded as low as $62.71 and as high as $90.93. On average, 1547340 shares of LBTYA exchange hands on a given day and today's volume is recorded at 3338725.