Global telecom service provider, Vodafone Group of the UK has increased its offer for taking over the Kabel Deutschland Holding AG, which is the largest cable operator in Germany after US-based Liberty Global Plc made a rival offer for the German firm.

According to media reports, Vodafone has said that it would pay 85 euros a share, which is higher than 80 euros to 82 euros per share offered earlier for the German company. Vodafone has only made an initial offer and is analysing the company's accounts for making an official offer for the company. Liberty Global already owns Germany's second biggest cable operator and had offered to pay 85 euro a share.

Vodafone increased its offer and now it matches that of the American firm and values the Germany Company at 7.5 billion euros or about $10.04 billion. Kabel Deutschland's board had reportedly snubbed a preliminary offer from Vodafone but many believe that the British giant could further increase the price as the acquisition would allow the company to make significant cost savings and generate cash flows.

The shares of Kabel Deutschland were trading above _85 a share on Tuesday as the two companies announced their preliminary bids.