Swedish private equity firm EQT has received about five bids in the range of EUR2 billion to EUR2.5 billion on its auction of German cable operator Kabel Baden-Wuerttemberg, three people close to the process said Thursday, in a potential disappointment to EQT on price.

The bidders include U.S. media conglomerate Liberty Global Inc. (LBTYA), and private equity firms CVC Capital Partners, Cinven Group, Providence Equity Partners and Hellman & Friedman, the people said.

EQT will evaluate the bids over the next couple of weeks and then decide if it should pursue with a sale or an initial public offering, one person said. Providence Equity, owner of Germany largest cable provider, Kabel Deutschland AG (KDG.XE), last year opted for a EUR760 million IPO valuing KDG at just under EUR5 billion, despite having previously received higher private offers. Providence later sold more shares in KDG and now holds about 44%.

People familiar with the matter said Providence Equity's bid might be complicated by its KDG stake, and Liberty Media is also expected to face anti-trust concerns because of its ownership of Unitymedia, Germany's second-largest cable operator by subscribers. KDG, KBW and Unitymedia had tried to merge in 2004 but were thwarted by regulators.

EQT, the private equity arm of Sweden's Wallenberg family, launched the sales process for Germany's third biggest cable operator last year, lining up banks in preparation of either an initial public offering or outright sale.

A person familiar with the matter earlier said the bidders would have to put up at least nine times Kabel BW's earnings before interest, taxes, depreciation and amortization, or EUR2.88 billion given Kabel BW's 2010 Ebitda of EUR320 million, to be recognized by the vendor. Another person said EQT was hoping for bids closer to EUR3 billion.

EQT acquired the Heidelberg-based provider of cable TV, Internet and telephone services from U.S. investment group Blackstone Group LP (BLX) for around EUR1.3 billion in 2006 and has invested more than EUR800 million in network expansion.

JPMorgan Chase & Co. (JPM) and Deutsche Bank AG (DB) are serving as advisors to EQT in the process.

Kabel BW declined to comment on the process.

-By Anna Molin and Margot Patrick, Dow Jones Newswires; +46 8 545 131 03; anna.molin@dowjones.com

(Carol Dean in London and Philipp Grontzki in Frankfurt contributed to this article.)
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