Not Satisfied With Virgin Media And O2 Merger, Liberty Global Takes 5% Vodafone Stake
Liberty Global has acquired a stake in British telecoms outfit Vodafone, but denied it has plans for a takeover bid. The US-based group is the parent company of Virgin Media, which merged with UK telco O2 in 2021.
The multinational company has acquired 1.3 billion Vodafone shares, accounting for a 4.92 percent stake in the telecoms biz.
Liberty Global chief executive Mike Fries said in a statement: "We believe, like many others, that Vodafone's current share price does not reflect the underlying long-term value of their operating businesses, or their announced consolidation and infrastructure opportunities."
Vodafone is one of the world's largest mobile telecommunications companies, with holdings in Africa, the Middle East and the Americas and was one of the original founders of the Verizon network in the US. However, its share price has fallen by more than 30 percent over the past year or so, making it ripe for opportunistic purchases.
Liberty Global already has a sizable stake in the UK market following the merger of its Virgin Media TV and broadband business with Telefónica's O2 UK mobile network in 2021.
Liberty Global has already swallowed Vodafone's Dutch mobile network operation, merging it with its subsidiary Ziggo in 2016.
"Fries is a shrewd operator and has a proven track record of delivering on these sorts of deals," PP Foresight telecoms and media analyst Paolo Pescatore told us, adding: "There's a frenzy of activity around Vodafone in light of recent changes and corporate activity."
This frenzy of activity included the departure of chief executive Nick Read in December due to the plunge in Vodafone's market capitalization, and investors buying then swiftly selling shares in the company.
- Reg reader rages over Virgin Media's email password policy
- UK's competition watchdog gives £31bn Virgin Media and O2 merger the seal of approval
- UK watchdog blesses Virgin Media and O2's union, says there's no risk of market distortion or competition loss
- UK competition watchdog fast-tracks investigation into mega-merger of O2 and Virgin Media
Vodafone was also in negotiations with CK Hutchison, the owner of Three UK, over merging the British operations of the two businesses to form what would be the country's largest telecoms concern.
The purchase of a substantial shareholding in Vodafone brings to mind the creeping acquisition of BT shares by French telco billionaire Patrick Drahi, owner of telecoms outfit Altice.
Like Fries, Drahi has denied that he intends to take over BT, but has increased his stake in the business several times to the point where Altice now owns 18 percent, making it the largest shareholder.
The matter was last year investigated by the UK government's Department for Business, Energy & Industrial Strategy (BEIS), which ultimately decided that no intervention was necessary.
"This is a pure financially driven opportunistic move – for now," said Pescatore of the Vodafone share purchase. "There could be an ulterior motive behind the scenes, given the close relationship of the two companies in the Netherlands and previous attempts to come together in other markets like the UK. Therefore, we cannot rule out other moves in the future." ®
Microsoft's Renewable Energy Leap: A Big Step Towards Sustainable Data Centers
In a significant move towards sustainability, Microsoft recently finalized a monumental deal with Brookfield Renewable, ... Read more
Data: The Sword And Shield Against Disinformation
In the age of information overload, distinguishing fact from fiction has become a daunting task. Disinformation, the del... Read more
Taking Flight: Volocopter's Quest To Revolutionize Urban Mobility Gains Momentum
Volocopter, a pioneering company in the field of urban air mobility, is on a mission to transform how people move around... Read more
OnlyFans Under The Microscope: Addressing Concerns Over Child Safety
Concerns Over Child SafetyOnlyFans' ResponseRegulatory ActionsCollaborative EffortsFuture DirectionsConclusion Read more
The AI Arms Race: Big Tech's Bid For Dominance In Artificial Intelligence
In the rapidly evolving landscape of technology, the race for dominance in artificial intelligence (AI) has intensified ... Read more
Decoding The Impact Of OpenAI's Sora Video Model On Industries And Jobs
In the realm of artificial intelligence, OpenAI's Sora video model stands out as a groundbreaking innovation, promising ... Read more