Vodafone Mulling $9.5 Billion Bid for Spanish Cable Operator
Published on: 11th Feb 2014
By: Ian Mansfield
Vodafone is continuing to build up its landline assets in Europe with a reported EUR7 billion (USD9.5 billion) offer to buy the Spanish cable operator Ono.
Citing unnamed sources, the Reuters news agency reported that Vodafone offered the deal to the company's private equity owners.
Ono's owners had planned a stock market listing, and Vodafone is seeking to persuade them to go for a straight trade sale instead. That would also be cheaper than a listing, providing a price can be agreed.
It would still need the usual regulatory approvals though.
Ono sells fixed and mobile phone, TV and internet services.
Vodafone's offer is expected to be discussed by Ono's board today and is said to be the second attempt to buy the company after its previous offer was rejected as too low.
The company's owners may hold out for an offer in the region of EUR9 billion. However, that puts the cable operator valuation at around 1.5 times the value of its local mobile network.
Vodafone is building up a portfolio of landline assets across Europe, tapping into consumer desires for multiple services from a single provider, and lower company valuations in the current economic climate.
On the web; Reuters