Vodafone, Liberty Have ‘Golden Opportunity’ in Merger: Nomura
2015-06-23 07:04:05.965 GMT
By Kasper Viita
(Bloomberg) -- Vodafone, Liberty Global discussions around
asset swaps will help to establish valuations, help weigh these
sub-optimal scenarios against “far more attractive” scenario
of combining all European assets under one roof, Nomura says,
raises Vodafone to buy.
* Cos. have potential to create “an unrivaled integrated
communications provider across Europe,” total cost
synergies seen at $32.6b
* Exchange of assets will be “a difficult negotiation” given
mismatch of asset valuations, synergy value
*
* Regulatory scrutiny will be tougher under this scenario,
appeal of entities left behind compromised by associated
constraints on regional scale
* Vodafone PT raised to 290p assuming 10% associated increase
in Liberty Global’s equity on announcement, discounted by
one year for regulatory scrutiny
* June 5: Vodafone said it’s in talks with Liberty regarding
possible exchange of selected assets; not currently
negotiating full merger
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To contact the reporter on this story:
Kasper Viita in London at +44-203-525-9219 or
kviita1@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net
2015-06-23 07:04:05.965 GMT
By Kasper Viita
(Bloomberg) -- Vodafone, Liberty Global discussions around
asset swaps will help to establish valuations, help weigh these
sub-optimal scenarios against “far more attractive” scenario
of combining all European assets under one roof, Nomura says,
raises Vodafone to buy.
* Cos. have potential to create “an unrivaled integrated
communications provider across Europe,” total cost
synergies seen at $32.6b
* Exchange of assets will be “a difficult negotiation” given
mismatch of asset valuations, synergy value
*
* Regulatory scrutiny will be tougher under this scenario,
appeal of entities left behind compromised by associated
constraints on regional scale
* Vodafone PT raised to 290p assuming 10% associated increase
in Liberty Global’s equity on announcement, discounted by
one year for regulatory scrutiny
* June 5: Vodafone said it’s in talks with Liberty regarding
possible exchange of selected assets; not currently
negotiating full merger
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Kasper Viita in London at +44-203-525-9219 or
kviita1@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net