Vodafone deliberates potential Liberty Global takeover
Telecoms provider Vodafone is reported to be weighing up the pros and cons of opening formal negotiations to wrest control of telecoms giant Liberty Global.
Such an alliance, whilst bringing economies of scale, would also carry risks owing to the high debt levels of the combined entity, leaving Vodafone executives to fret as to how investors might react.
Reports in Bloomberg suggest that valuation and regulatory issues provide other obstacles to reaching a deal, which is currently under deliberation.
Vodafone’s hand has been pushed by wider moves toward consolidation in the industry with BT in negotiations to buy out either EE or O2.
Liberty Global has previously indicated it would be open to a takeover of its European cable assets, for the right price, which Vodafone has thus far been reluctant to meet.