[Silent No More]

Quote:

Vodafone is in talks about swapping assets with Liberty Global but has scotched speculation it is considering a full-blown merger with the Virgin Media owner.

The FTSE 100 mobile giant was forced to issue a statement to the stock exchange on Friday after reports surfaced overnight that it was in discussions with the cable operator, which is controlled by the US billionaire and deal maker John Malone.

It had been suggested that a merger of the two business was on the cards. However, Vodafone said on Friday that it is not looking at a tie-up, which disappointed investors and sent the company's shares down 1pc in early trading.

"Vodafone confirms that it is in the early stages of discussions with Liberty Global regarding a possible exchange of selected assets between the two companies," the telecoms business said.

"There is no certainty that any transaction will be agreed, nor is there certainty with respect to which assets will ultimately be involved.

"Vodafone is not in discussions with Liberty Global concerning a combination of the two companies."

http://www.telegraph.co.uk/finance/n...ty-Global.html

[moox]

Virgin Media in exchange for some of their European networks, perhaps?

[enapace]

Quote:

Originally Posted by moox

Virgin Media in exchange for some of their European networks, perhaps?

Maybe there Cable network in Germany plus Cash for Virgin Media or something like that. I know Liberty has a MVNO network in Germany at present.

[engineermoore]

Quote:

Originally Posted by moox

Virgin Media in exchange for some of their European networks, perhaps?

Could there be any issues with Vodafone potentially owning the Cable and Wireless fibre network and virgin media's fibre network?

[enapace]

Quote:

Originally Posted by engineermoore

Could there be any issues with Vodafone potentially owning the Cable and Wireless fibre network and virgin media's fibre network?

I very much doubt it seeing as Cable and Wireless was mainly a Business company with very little residential presence. Plus Vodafone could easily say that even the combined entity wouldn't have the same presence as BT does.

Plus the fact CityFibre is building Business Fibre Networks across the country will make it easier as well.

[maverickjesus]

Quote:

Originally Posted by enapace

Maybe there Cable network in Germany plus Cash for Virgin Media or something like that. I know Liberty has a MVNO network in Germany at present.

I suspect its exactly this - UK & Germany are the only places where the asset swaps would make sense. VM needs a mobile presence now BT will effectively own their current MVNO operation, and Vodafone are trying to start a broadband business from zero, so they match up well. In Germany Vodafone owns 'half' of a national cable network, LG owns the other - unlocking its true value means one company really need to own both sides (once the regulatory hurdles have been powered through).

LGs Dutch/Belgian/Swiss assets don't really fit with Vodafone's existing assets, nor do their eastern european networks. Its why a merger or straight takeover is always going to be a hard sell.

[maverickjesus]

Quote:

Originally Posted by enapace

I very much doubt it seeing as Cable and Wireless was mainly a Business company with very little residential presence. Plus Vodafone could easily say that even the combined entity wouldn't have the same presence as BT does.

Plus the fact CityFibre is building Business Fibre Networks across the country will make it easier as well.

The only potential issue I can think of would be Three/O2, as both of their major backhaul providers would now be owned by mobile competitors.

[moox]

Quote:

Originally Posted by maverickjesus

The only potential issue I can think of would be Three/O2, as both of their major backhaul providers would now be owned by mobile competitors.

I would be surprised if BT is allowed to get EE without some sort of additional regulations to help prevent them from abusing that position. Or Openreach gets spun off

[enapace]

Quote:

Originally Posted by maverickjesus

I suspect its exactly this - UK & Germany are the only places where the asset swaps would make sense. VM needs a mobile presence now BT will effectively own their current MVNO operation, and Vodafone are trying to start a broadband business from zero, so they match up well. In Germany Vodafone owns 'half' of a national cable network, LG owns the other - unlocking its true value means one company really need to own both sides (once the regulatory hurdles have been powered through)

LGs Dutch/Belgian/Swiss assets don't really fit with Vodafone's existing assets, nor do their eastern european networks. Its why a merger or straight takeover is always going to be a hard sell.

Very True but Germany is certainly a very important EU market for Vodafone at present so can't see them wanting to just give it up. Vodafone does have a Netherlands network that they would probably be willing give up as it wouldn't effect there bottom line to much. Maybe they could sell of Ireland as well.

Quote:

Originally Posted by maverickjesus

The only potential issue I can think of would be Three/O2, as both of their major backhaul providers would now be owned by mobile competitors.

True but BT is going to fold there Wholesale Fiber business into Openreach. With BT buying EE so that isn't to much of an issue either as they will still be able get reliable backhaul.

Quote:

Originally Posted by moox

I would be surprised if BT is allowed to get EE without some sort of additional regulations to help prevent them from abusing that position. Or Openreach gets spun off

What Moox said.

[japaul]

Quote:

Originally Posted by enapace

Maybe there Cable network in Germany plus Cash for Virgin Media or something like that. I know Liberty has a MVNO network in Germany at present.

That's a possibility but there was also talk today of the other way around with Vodafone giving up the UK in return for Liberty's German business. That would raise a few eyebrows but there's no reason of course why Vodafone has to have a UK business. Some also thought the Netherlands could be involved.

Vodafone's statement raised more questions than answers.

[GreenLantern]

I would be very surprised if Vodafone pull out of the UK or Germany in any way shape or form.

Especially the UK.

But stranger things have happened !

[enapace]

Quote:

Originally Posted by japaul

That's a possibility but there was also talk today of the other way around with Vodafone giving up the UK in return for Liberty's German business. That would raise a few eyebrows but there's no reason of course why Vodafone has to have a UK business. Some also thought the Netherlands could be involved.

Vodafone's statement raised more questions than answers.

I figured Netherlands myself as it is certainly one of the lesser networks Vodafone operates in Europe. I would be very surprised if they got rid of UK though suppose Ireland could also be up for grabs.