Liberty Global Plc (LBTYA), the company controlled by billionaire John Malone, agreed to fully take over Dutch broadband provider Ziggo NV (ZIGGO) for 4.9 billion euros ($6.7 billion) to cement its dominance in Europes cable industry.

Ziggo investors will receive 34.53 euros for each share -- including 11 euros in cash and the remainder in Liberty Global stock, the companies said today. Thats 3.8 percent more than the Jan. 24 close. Ziggo, which fell as much as 6.7 percent today, is seeking 3.7 billion euros of loans to finance its buyout, said a person with knowledge of the matter, who asked not to be named because the discussions are confidential.

With 2.7 million customers, Ziggo allows Liberty Global to combine the business with its UPC cable unit to take on Dutch carrier Royal KPN NV. European cable and fixed-line assets are attracting buyers, with Vodafone Group Plc (VOD) acquiring Kabel Deutschland Holding AG for more than $10 billion in October -- beating an offer from Liberty Global -- to bolster its fixed-line business in Germany.

Its a fair offer, said Emmanuel Carlier, an analyst at ING Groep NV in Brussels. That the shares are falling is due to the offer being for a large part in stock, some people cant or dont want to have U.S. stocks.

A pedestrian passes a Ziggo BV store in Utrecht, Netherlands.

A pedestrian passes a Ziggo BV store in Utrecht, Netherlands. Close

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A pedestrian passes a Ziggo BV store in Utrecht, Netherlands.

Liberty Global has sought to extend its reach in Europe, acquiring the U.K.s Virgin Media Inc. last year for about $16 billion. The company also operates in Germany, Switzerland, Austria, Belgium and Ireland as well as eastern Europe.

Its also studying a spinoff of its Latin American businesses, a move that would make London-based Liberty Global a purely European cable company.

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Malone’s Liberty Global Agrees to Buy Dutch Cable Provider Ziggo