City speculation suggests BT Group, BSkyB or TalkTalk could be UK mobile group's next target
Vodafone has sparked speculation that it might be on the verge of a big UK acquisition after confirming it has used £6bn of its cash warchest to buy Ono, Spain's largest cable operator.
The UK mobile group said it had spent some of the $130bn (£78bn) it made from selling its US arm last year to buy the private equity-owned group, as City gossips suggested its next move might involve a sensational tilt at acquiring the former state-owned monopoly BT Group, the pay-TV provider BSkyB or the rival telecoms firm TalkTalk. Liberty Global, the US owner of Virgin Media, has also been mentioned as a potential target.
Paul Marsch, a telecoms analyst at the German bank Berenberg, said: "Maybe [Vodafone] wants to buy BT. They could potentially use the BT balance sheet to fund it, as well as issue Vodafone shares." Analysts have previously suggested Vodafone could make a move for BT's main rival, BSkyB, as telecoms groups look to sell their customers a greater array of services, such as television and broadband services.
Ronald Klingebiel, assistant professor of strategy at Warwick Business School, said: "Vodafone would do well in fortifying its multi-play offering in its main markets. It has made moves in the UK, Germany and Spain already, so Italy could be next. Here, Swisscom affiliate Fastweb, or even Wind, could make for targets. If the Ziggo takeover by Liberty Global falls through, it could provide another target in the Netherlands."
Vodafone's purchase of Ono, which broadcasts programmes ranging from Hollywood films to La Liga football, is the UK firm's second major acquisition in Europe, coming after its purchase of Kabel Deutschland last year. Vodafone was attracted by the German company's extensive cable network, which it could use to expand its fixed-line, broadband and television business. The UK company is also building fibre broadband networks in Portugal and Italy as part of its efforts to expand services in those markets.
Vodafone said Ono's superfast cable network had 1.9m customers, which would allow it to create a stronger challenger to the market leader in Spain, Telefonica.
Vittorio Colao, Vodafone's chief executive, said: "Demand for unified communications products and services has increased significantly over the last few years in Spain, and this transaction – together with our fibre-to-the-home build programme – will accelerate our ability to offer best-in-class propositions in the Spanish market."
He has ruled out a bid for the UK television groups ITV and Channel 5. Telecoms watchers have suggested that he might buy TalkTalk or sign a more comprehensive partnership deal with BSkyB, which already allows Vodafone customers access to Sky Sports clips on their mobile phones. However, Vodafone's acquisitions so far have focused on buying companies with their own networks, which some believe rules out any chance of an offer for TalkTalk.
An alternative scenario is being floated in the City, in which Vodafone is a potential target. Marsch said: "Out of all the big incumbent operators in Europe, Vodafone is the only one you can realistically think could be acquired. Germany is not going to allow Deutsche Telecom to be bought. Spain will not allow Telefonica to be acquired. It seems a fairly obvious bit of consolidation if [the US giant] AT&T decides it is getting serious about Europe, or [Japan's] Softbank gets knocked back in the US [where it is attempting to expand]."
Last year, in the third-largest transaction in corporate history, Vodafone sold its stake in America's biggest mobile network to its joint venture partner, Verizon Communications, for $130bn, returning 71% of the windfall to its shareholders. Reported by guardian.co.uk 7 hours ago.
Vodafone has sparked speculation that it might be on the verge of a big UK acquisition after confirming it has used £6bn of its cash warchest to buy Ono, Spain's largest cable operator.
The UK mobile group said it had spent some of the $130bn (£78bn) it made from selling its US arm last year to buy the private equity-owned group, as City gossips suggested its next move might involve a sensational tilt at acquiring the former state-owned monopoly BT Group, the pay-TV provider BSkyB or the rival telecoms firm TalkTalk. Liberty Global, the US owner of Virgin Media, has also been mentioned as a potential target.
Paul Marsch, a telecoms analyst at the German bank Berenberg, said: "Maybe [Vodafone] wants to buy BT. They could potentially use the BT balance sheet to fund it, as well as issue Vodafone shares." Analysts have previously suggested Vodafone could make a move for BT's main rival, BSkyB, as telecoms groups look to sell their customers a greater array of services, such as television and broadband services.
Ronald Klingebiel, assistant professor of strategy at Warwick Business School, said: "Vodafone would do well in fortifying its multi-play offering in its main markets. It has made moves in the UK, Germany and Spain already, so Italy could be next. Here, Swisscom affiliate Fastweb, or even Wind, could make for targets. If the Ziggo takeover by Liberty Global falls through, it could provide another target in the Netherlands."
Vodafone's purchase of Ono, which broadcasts programmes ranging from Hollywood films to La Liga football, is the UK firm's second major acquisition in Europe, coming after its purchase of Kabel Deutschland last year. Vodafone was attracted by the German company's extensive cable network, which it could use to expand its fixed-line, broadband and television business. The UK company is also building fibre broadband networks in Portugal and Italy as part of its efforts to expand services in those markets.
Vodafone said Ono's superfast cable network had 1.9m customers, which would allow it to create a stronger challenger to the market leader in Spain, Telefonica.
Vittorio Colao, Vodafone's chief executive, said: "Demand for unified communications products and services has increased significantly over the last few years in Spain, and this transaction – together with our fibre-to-the-home build programme – will accelerate our ability to offer best-in-class propositions in the Spanish market."
He has ruled out a bid for the UK television groups ITV and Channel 5. Telecoms watchers have suggested that he might buy TalkTalk or sign a more comprehensive partnership deal with BSkyB, which already allows Vodafone customers access to Sky Sports clips on their mobile phones. However, Vodafone's acquisitions so far have focused on buying companies with their own networks, which some believe rules out any chance of an offer for TalkTalk.
An alternative scenario is being floated in the City, in which Vodafone is a potential target. Marsch said: "Out of all the big incumbent operators in Europe, Vodafone is the only one you can realistically think could be acquired. Germany is not going to allow Deutsche Telecom to be bought. Spain will not allow Telefonica to be acquired. It seems a fairly obvious bit of consolidation if [the US giant] AT&T decides it is getting serious about Europe, or [Japan's] Softbank gets knocked back in the US [where it is attempting to expand]."
Last year, in the third-largest transaction in corporate history, Vodafone sold its stake in America's biggest mobile network to its joint venture partner, Verizon Communications, for $130bn, returning 71% of the windfall to its shareholders. Reported by guardian.co.uk 7 hours ago.