Vodafone has revealed that it is in talks with Liberty Global over “selected asset swaps”, but are not discussing a full-blown merger.
The FTSE 100 mobile giant issued a statement to the stock exchange this morning after reports surfaced overnight that it was in discussions with the cable operator.
Rumours have long been rife about a possible merger between the two companies, as as fixed and mobile telecom markets and networks converge. The company confirmed in a statement that “ it is in the early stages of discussions with Liberty Global regarding a possible exchange of selected assets between the two companies.”
Vodafone did not specify which parts of the company and the assets that would be involved, continuing: “There is no certainty that any transaction will be agreed, nor is there certainty with respect to which assets will ultimately be involved”. Vodafone’s shares were down 2 percent at 243 pence by 0800 GMT (9:00 a.m.) following the statement, having risen 2 percent in earlier trade following media reports that the two companies were looking at a merger. The stock is still trading up 7 percent since May 19 when renewed speculation about a combination began.
by Miranda Wadham