Ono siding with public float over Vodafone’s offer
VODAFONE could dip into its £25bn acquisition fund to pursue a takeover bid of Ono, even if Spain’s second largest cable operator proceeds with its plans for a public float.
Yesterday Ono’s board met to consider options of which an initial public offering (IPO) is understood to have been the prefered choice, despite rival €7bn (£5.8bn) buyout offers from Vodafone and Liberty Global.
Sources close to Vodafone last night said that it could still be interested in Ono, implying a deal similar to the takeover of Kabel Deutschland in June last year might be considered, if it fits in with Vodafone’s mergers and acquisitions criteria.
They told City A.M. that conversations between Vodafone and Ono “still have time to play out”.
Vodafone chief executive Vittorio Colao on Monday said his firm had up to £25bn to spend on acquisitions in coming years and no deal should be too big if it makes strategic sense.
“We are looking at acquisitions that are sizeable and could transform the company,” said Colao at a media roundtable in New York where he laid out his strategy for the world’s second-largest mobile operator.
“The theory is that if an acquisition makes sense you should not be worried by the size because shareholders should approve it,” he added.
Vodafone and Ono both declined to comment on their next moves.