Skip to content

Vodafone to buy Spain's Ono in $10 billion deal

By Catholic Online (NEWS CONSORTIUM)
3/18/2014 (3 years ago)
Catholic Online (www.catholic.org)

Agreement meant to expand Vodafone's presence in Europe

In a deal aimed at expanding its interests in Europe, Vodafone has agreed to buy Spanish cable operator Ono for $10 billion in U.S. dollars. Private equity-owned, Ono offers cable TV and internet services and has 1.9 million customers in Spain. Vodafone boss Vittorio Colao said the deal was "an attractive value creation opportunity."

Europe's communications market is consolidating as Vodafone and rivals such as billionaire John Malone's Liberty Global vie for assets.

Europe's communications market is consolidating as Vodafone and rivals such as billionaire John Malone's Liberty Global vie for assets.

Highlights

By Catholic Online (NEWS CONSORTIUM)
Catholic Online (www.catholic.org)
3/18/2014 (3 years ago)

Published in Europe

Keywords: Vodafone, Ono, Spain, European saturation


LOS ANGELES, CA (Catholic Online) - The deal arrives six months after Vodafone bought a controlling stake in German cable operator Kabel. Vodafone now says it plans to spend up to Ł25 billion of the Ł84 billion it generated from the sale of its stake in Verizon Wireless on investment in its core European networks.

Ono's private equity owners, before the Vodafone deal, had been planning to float the company on the Madrid stock exchange.

Prayer, fasting and almsgiving.

The enlarged business would help to "drive innovation in the Spanish telecommunications industry," Jose Maria Castellano Rios, chairman of Ono's board of directors, said.

The deal puts Vodafone in a better position to compete with rivals such as Telefonica and Orange. "It follows the strategy they are already pursuing in Germany and in Europe in general, which is to expand their overall offer to their clients by adding cable service to their wireless services," Peregrine & Black analyst Markus Huber says.

Mike McCudden, head of derivatives at online broker Interactive Investor, agreed the purchase was a "shrewd strategic move" for Vodafone, noting that the deal would provide it with the fixed-line operation it currently lacked in Spain.

Buying Germany's Kabel Deutschland last year, Vodafone is adding both internet and television services across Europe as it looks for ways to compensate for falling cellular revenue.

The deal might spur more takeovers as rivals tried to match Vodafone's size. "It's the start of a whole new set of merger and acquisition stories, pan-European," Robin Bienenstock of Sanford C. Bernstein said. "You start to see cross-border stuff."

Vodafone shares rose as much as 1.82 percent by 1.30pm in London. The stock has lost one percent in the past year.

Private equity firms Providence Equity Partners, CCMP Capital Advisors, Quadrangle Capital Partners and Thomas H Lee Partners are all Ono shareholders. The four together hold about 54.4 percent of the Spanish operator.

Europe's communications market is consolidating as Vodafone and rivals such as billionaire John Malone's Liberty Global vie for assets.

AT&T remains interested in buying Vodafone even after giving up the option to bid for the carrier for six months, sources said in January.

AT&T has expressed interest in Europe's move into fourth-generation wireless networks, which are a few years behind services in the U.S. and present the opportunity for carriers to charge a premium.

---


'Help give every student and teacher Free resources for a world-class moral Catholic education'


Copyright 2017 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for APRIL 2017
Young People.
That young people may respond generously to their vocations and seriously consider offering themselves to God in the priesthood or consecrated life.


Comments


More Europe

Astonishing secret cavern where the Knights Templar hid revealed Watch

Image of The Knights Templar were a band of christian warrior monks devoted to protecting Christians in the Holy Land.

New images show the carvings made by Knights Templar in a secret cave in England. Due to political corruption, the Christian knights were ... continue reading


Stunned historians discover a second handwritten, parchment copy of the Declaration of Indepenence, neatly stored, iventoried and categorized in this most likely of places... Watch

Image of The Declaration of Independence is one of our greatest national treasures. The new copy was found by Harvard researchers compiling a database of resources for scholarly research of the Declaration.

A second handwritten copy of the Declaration of Independence has been found in England, to the delight of Harvard researchers who ... continue reading


France is choosing between a nationalist and a globalist, sound familiar? Watch

Image of Emmanuel Macron and Marine Le Pen will face a final election on May 7.

France is about to elect a new president, and following a preliminary election, it will be one of two choices. The globalist Emmanuel ... continue reading


Workers accidentally discover an Archbishop's lost tomb -- in London Watch

Image of A gold mitre rested atop one of the lead coffins in the crypt. How did it get there?

The remains of five Archbishops of Canterbury have been found under a medieval church during renovations. The find is remarkable because of ... continue reading


BREAKING: Terrorist attack in Stockholm as truck plows though crowd Watch

Image of People flee as the terrorist attacker drives into a department store.

At least five people are dead following an apparent terrorist attack in Stockholm. A terrorist has driven a hijacked truck though a crowded ... continue reading


Never Miss any Updates!

Stay up to date with the latest news, information, and special offers.

Catholic Online Logo

Copyright 2017 Catholic Online. All materials contained on this site, whether written, audible or visual are the exclusive property of Catholic Online and are protected under U.S. and International copyright laws, © Copyright 2017 Catholic Online. Any unauthorized use, without prior written consent of Catholic Online is strictly forbidden and prohibited.