Liberty Chairman John Malone said a tie-up with Vodafone Group Plc would be a “great fit” for his cable empire in western Europe
This is not a new rumour and the size of the companies... with Vods twice the size of Liberty plus the size of the tax assets Vods is in the billions where Liberty in the millions, points to an acquisition of Liberty by Vodafone
The deal would have a share component as one assumes Malone remains involved in the entity. Perhaps all share.
Citi believes that Vodafone could pay $62.5 per share for Liberty Global — Citi estimates that a deal at 18 VOD shares for every Liberty Global share would prove ~11% accretive to Vodafone’s EPS.
At present Liberty fair value consensus is 11pct higher at USD59 per share where as Vods consensus fair value is 1pct higher than current share price.
A Long Liberty/ Short Vodafone trade may start to look attractive