Vodafone could consider a “transformational” M&A deal in the longer term and would explore a takeover of cable giant Liberty Global for the right price, CEO Vittorio Colao has been cited as saying.
Speaking at an investor conference in New York,…
Vodafone could consider a “transformational” M&A deal in the longer term and would explore a takeover of cable giant Liberty Global for the right price, CEO Vittorio Colao has been cited as saying.
Speaking at an investor conference in New York, Colao said efforts to invest in Vodafone’s networks and consolidation within the telecoms sector would better enable the company to make deals in the longer term, the Financial Times reported.
Bloomberg cited the CEO as saying after his presentation that John Malone’s Europe-focused cableco may be the “right fit” for Vodafone, price dependant.
UK-based Vodafone has made a strategic decision to look for convergence plays in European markets where it already offers mobile services. The sale of its stake in the US’ Verizon Wireless for US$130bn last year has freed up cash to both develop its networks and make acquisitions.
Vodafone has since acquired Germany’s largest cableco Kabel Deutschland for €7.7bn, beating Liberty to the asset, as well as Spanish cableco Ono for €7.2bn and Greek broadband and fixed-line operator Hellas Online for €72.7m. And this July, the company made a joint bid with Greek telco Wind Hellas for Athens-listed alternative fixed-line operator Forthnet.
Meanwhile, there has been considerable speculation that Vodafone could combine with a large player such as Liberty, with which it has competed for cable assets in Europe, or US telecoms giant AT&T.
Colao was also quoted as saying at the Goldman Sachs Communacopia conference that UK rival BT is expected to pursue a similar strategy to Vodafone. BT may also discount mobile services to help push its core broadband offerings. Colao reportedly contended that such a move would likely prompt Vodafone and other local mobile operators to discount their fixed broadband services.
Colao reportedly added he is optimistic that the new European Commissioners will address the low return on investments in the telecoms sector, arguing that mergers should be approved without remedies granting other operators wholesale access to networks.
Gunther Oettinger replaced Neelie Kroes this week as the commissioner for the digital agenda.
