Vodafone Reportedly Discusses Ideas Including Merger With Liberty

(RTTNews) - Vodafone Group Plc (VOD.L, VOD) and Liberty Global Plc (LBTYA, LBTYB and LBTYK) are discussing a range of potential transactions, including a merger, Bloomberg reported citing people with knowledge of the matter.

According to the report, the talks are informal and at a very early stage, and an agreement may not be reached because of the complexity of the proposed transactions and regulatory concerns. Management issues, including who would run the combined company and the role of billionaire Liberty Global Chairman John Malone, are also a hurdle.

The report indicated that other options under discussion include a merger of the companies' European businesses as well as a series of asset swaps. A merger of the two companies would be one of the largest deals ever based on enterprise value, with Liberty Global currently at about $89 billion and Vodafone closer to $141 billion. Liberty has soured slightly on the talks in recent weeks.

LBTYA closed Thursday trading at $54.60, down $1.22 or 2.19%. However, in after hours, the stock gained $2.55 or 4.67%.

VOD closed Thursday trading at $37.71, down $0.54 or 1.41% However, in after hours, the stock gained $0.54 or 1.43%.