Just the latest to snaffle a share of the cut-price stock after e& and Xavier Niel
Vodafone is enduring an extended rough period – the group has lost about 55% of its value in the last five years – but clearly there is belief in the industry that things will get better. Colorado-based Liberty Global is the latest fellow operator group to buy a tranche of shares, worth €1.2 billion and equating to a 4.92% stake, in Vodafone Group.
In September, French billionaire Xavier Niel announced bought a 2.5 per cent stake in Vodafone although Vodafone turned down his 11 billion offer to acquire its Italian opco. His Iliad Group operates under the Free brand in France and Italy, and Play in Poland.
Over the last year, the UAE operator group, e&, formerly known as Etisalat. has built an almost 13% stake.
Fries told the Financial Times [subscription needed] that Liberty Global had not had discussion with Niel or e&.
Like e&, Liberty Global said it is not seeking a seat on the board nor is it proposing a takeover bid.
Liberty Global’s CEO, Mike Fries, told the FT, “The stock’s cheap — it’s an opportunistic and financial investment,” and said his company has $3.5 billion in cash to “put to work”.
This is a clear signal that Liberty Global expects Vodafone’s fortunes to improve and mentioned the possible merger between Vodafone UK and Three UK. The proposed deal was mooted in early October,but the negotiations are apparently continuing and approvals will be required.
Fries noted the UK is the only market in which there are still four networks operators as, Belgium, Ireland, the Netherlands and Switzerland have all consolidated down to three.