Vodafone's proposal to buy German cable company Kabel Deutschland received approval by the country's financial regulators, clearing one hurdle for the €7.7 billion deal.

Kabel Deutschland shareholders may decide on the €87 per share offer, which includes a €2.50 dividend, through September 11, the Newbury, England-based company said in a statement.

As of today, Vodafone has a 4.2 per cent stake in Kabel Deutschland.

Acquiring Kabel Deutschland would give Vodafone access to the German company’s 8.5 million connected households and potential customers for combined packages of phone, Internet and TV subscriptions.

It would also intensify competition with Deutsche Telekom, the country's former phone monopoly, on whose network Vodafone has so far relied for wireline services.

Kabel Deutschland’s supervisory board is scheduled to meet August 1 to discuss the proposal, a person familiar with the matter said earlier this month.

The company has said it would recommend Vodafone’s bid to shareholders. The companies aim to wrap up the transaction following Kabel Deutschland’s October 10 annual shareholder meeting, pending antitrust approval, people familiar with the matter have said.

A month after Vodafone announced the deal, Spain’s Telefonica and Royal KPN of the Netherlands agreed to combine their German phone businesses.

Bloomberg