Vodafone-Liberty deal would create cable monopoly - Telefonica Deutschland

FRANKFURT, May 9 (Reuters) - Telefonica Deutschland , Germany's third-largest mobile operator, said Vodafone's proposed $21.7 billion takeover of Liberty Global's European assets would lead to excessive market concentration.

"It's clear that the announced transaction would create a monopoly in cable content distribution and a de facto duopoly in fixed-line infrastructure in Germany," Chief Executive Markus Haas said in a statement.

"We therefore expect close scrutiny from the responsible competition authorities. If this combination is in any way approvable, then only under appropriately strict conditions."

Telefonica Deutschland, majority-owned by Telefonica (LSE: 826858.L - news) of Spain, has a mobile-led strategy. That leaves it vulnerable to 'converged' mobile and fixed services offered nationwide by market leader Deutsche Telekom (IOB: 0MPH.IL - news) and, if the proposed deal goes through, Vodafone. (Reporting by Douglas Busvine Editing by Maria Sheahan)