Vodafone and Liberty Global gauging investor appetite for ‘friendly’ merger; Liberty could bid for ITV
Vodafone [LON:VOD] and Liberty Global [NASDAQ:LBTYA] have been sounding out major shareholders regarding the level of support for a potential “friendly” merger, The Daily Mail reported. The newspaper’s market report section cited dealers for speculation that Liberty Global Chairman John Malone has initiated fresh talks about a possible merger between the UK-based cable media group and Vodafone, a UK-based mobile telecoms operator.
The response from major shareholders to the merger overtures from Vodafone and Liberty Global executives was positive, the item said. The report added that the developments have set the stage for Vodafone and Liberty to agree to a deal early in 2016.
As previously reported, Vodafone and Liberty Global discussed possible asset swaps earlier this year. The discussions broke off in September without a deal.
Separately, the article noted that Liberty owns a 9.9% shareholding in ITV [LON:ITV], adding that Liberty might soon decide to launch a takeover bid for the UK-based television broadcaster.
Vodafone’s share price closed 1.25p down at 217.5p in London yesterday, 30 December, giving the company a market capitalisation of GBP 57.75bn (USD 78.30bn). Liberty Global shares closed USD 0.19 up at USD 40.44, valuing the company at USD 33.23bn.
ITV’s share price closed 1.5p down at 276.5p in London yesterday, giving the FTSE-100 broadcaster a market capitalisation of GBP 11.13bn.
Daily Mail