Speculation around a merger between Vodafone and Liberty Global has heightened in the past week, with Vodafone investors now lifting their head above the parapet.
Two of Vodafone’s largest investors have told The Sunday Telegraph that they would…
Speculation around a merger between Vodafone and Liberty Global has heightened in the past week, with Vodafone investors now lifting their head above the parapet.
Two of Vodafone’s largest investors have told The Sunday Telegraph that they would like to see Vodafone’s networks in emerging markets spun-off to facilitate a merger.
Combining Vodafone’s European mobile operations with Liberty Global’s cable networks on the continent would make strategic sense according to John Malone, Liberty Global’s chairman. However the cable veteran has said he is not interested in Vodafone’s assets in Africa, the Middle East and Asia-Pacific, valued together by analysts at a reported US$46bn.
Vodafone’s shares have risen more than 9% over the past five days. One investor was quoted in the report saying: “Nobody has ever doubted the strategic logic of a combination with Liberty, but now it looks like the stars are aligning.”
In April Liberty Global bought Belgian mobile operator Base, marking a shift from its previous strategy where owning an MVNO to complement its fixed-line offering would suffice. The change in tack makes Vodafone – in the words of Malone – a “great fit” for Liberty Global as it has a mobile presence in seven European markets in which the company has cable assets.
