Liberty Global plc – Class a Ordinary Shares (LBTYA)’s Malone Trying to Reach a Common Ground with Vodafone Group Plc (ADR) (VOD)
Liberty Global plc – Class A Ordinary Shares (NASDAQ:LBTYA)’s Chairman, John Malone, said that he is trying to reach common ground with Vodafone Group Plc (ADR) (NASDAQ:VOD). That was in respect of exchanging or combining of assets. There has been a stalemate over the discussions following the public disclose of talks between the two concerned parties.
Deadlock In Reaching Agreement
When big companies want to merge, there is a threat of anti-trust scrutiny coming into play. Also, such M&A might force the rivals to change their tactics. Liberty Global plc – Class A Ordinary Shares (NASDAQ:LBTYA) and Vodafone Group Plc (ADR) (NASDAQ:VOD) merger might face a number of roadblocks. For instance, Deutsche Telekom AG said that it would oppose merger in Germany. As far as Malone is concerned, he cannot afford to ignore Germany, the Netherlands, and the United Kingdom as they are key markets for expansion.
In June, Vodafone Group Plc (ADR) (NASDAQ:VOD) was talking with Liberty Global in respect of swapping assets. Both of them were only discussing the potential range of transactions that included assets exchange, combing their western European businesses besides an outright merger. The British telecom giant indicated that it was not discussing for a full merger.
Aviate Global analyst, Neil Campling, said in London that Vodafone Group Plc (ADR) (NASDAQ:VOD) would be the biggest loser if an agreement between Liberty Global plc – Class A Ordinary Shares (NASDAQ:LBTYA) is not reached. That is because a disparate mobile network offerings only in multiple market offering with no competitive advantage or scale opportunities, few synergies and definitely quad-play.
Another brokerage, Wunderlich said that it took into consideration the Liberty Global plc – Class A Ordinary Shares (NASDAQ:LBTYA) Chairman view to Bloomberg. That meant that a deal was possible and the M&A. however, it seems both of them were not able to reach an understanding on the synergy value so far. The brokerage expects the synergy value to be more than $39 billion. That was despite taking a lenient view.
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