UK-based telco Vodafone Group is reported to be in talks with the private equity owners of Spanish cableco Ono regarding an acquisition.
Vodafone could offer US$11.6bn – according to The Times – for the Madrid-based operator, which is in the process…
UK-based telco Vodafone Group is reported to be in talks with the private equity owners of Spanish cableco Ono regarding an acquisition.
Vodafone could offer US$11.6bn – according to The Times – for the Madrid-based operator, which is in the process of appointing banks to work on an initial public offering.
A deal with Ono’s owners could be announced within the next few weeks, although they may decide to press on with the IPO instead, two people familiar with the negotiations told Bloomberg.
Ono is owned by a number of investment firms including Providence Equity Partners, Thomas H. Lee, CCMP and Quadrangle. Representatives of Providence and Thomas H. Lee declined to comment on the reports, as did a Vodafone spokesperson.
Vodafone is set to become cash-rich next month when the US$130bn sale of its 45% stake in Verizon Wireless closes.
An acquisition of Ono would fit into Vodafone’s strategy to offer a broader range of integrated services, akin to its purchase of Germany’s Kabel Deutschland last year.
Vodafone is the second largest mobile operator in Spain, as it is in Germany, and an acquisition of Ono would allow it to offer quad-play services.
The need for Vodafone to have a clear strategy appears more important than ever today after AT&T – long-rumoured to be interested in the company – said it did not plan to bid for the British telco, rocking Vodafone’s share price.
