The EUR7.7 billion Vodafone Group Plc takeover bid for Kabel Deutschland Holding AG is being held back because of speculation as to a hedge fund's increasing its shareholdings in order to generate more cash for the deal. 

The midnight deadline for Vodafone's collection of 75% of the shares in Kabel Deutschland, when unmet, would result in the deal being deemed incomplete. The offer would lapse should Vodafone, who already held 20% of the shares, would not reach the said threshold. 

The increased participation of Elliot Management Corp had increased the risk of failure to complete the transaction. The hedge fund headed by billionaire Paul Singer had recently become Kabel Deutscheland's largest shareholder. An anonymous source familiar with the transaction said that the hedge fund is hoping for an increase to the EUR87 per share offer price out of Vodafone. 

Elliot Management said it had reached 10.9% shareholdings in the German telecommunications firm. It is now seeking to take advantage of a law that would require a buyer holding 75% of the target shares to offer more money to hold-outs, after the hedge fund secures called domination and profit-transfer agreement.