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Vodafone Still Looking at Takeover bid for Spain's Yoigo

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Vodafone is again reported to be mulling a bid for Spain's smallest mobile network, Yoigo, which was put up for sale last year by its majority shareholder, TeliaSonera.

Citing sources, the UK's Sunday Times newspaper reported that Vodafone is preparing a takeover bid for the company that could value its in the region of EUR750 million - EUR1.2 billion.

Vodafone had confirmed last year that it was looking at a possible bid, but TeliaSonera later said that it was in no hurry to sell and was holding out for a good offer. The company is understood to be holding out for offers of at least EUR1 billion.

Teliasonera owns 76.56% of the Spanish mobile network. According to our records, ACS, a construction and services group, has a 17 percent stake, FCC a 3.4 percent stake and Telvent a 3 percent stake.

Yoigo was awarded the country's fourth mobile license in 2000 during the height of the 3G licenses bubble. Known at the time as Xfera the company struggled to launch its network and after several shareholders sold their stakes to Teliasonera, the network launched in June 2006.

One complication in a bid by any of the companies already operating in the country is Yoigo would likely have to surrender its 3G license if it was majority owned by Vodafone, which already has a 3G license of its own.

Another potential bidder has been suggested as America Movil who would avoid having to hand back the 3G license, although that was downplayed last year - if not outright denied.

On the web: Sunday Times

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Tags: yoigo  vodafone  Spain