Vodafone in talks with Liberty world on Dutch venture

Mobile phone networks operator Vodafone same on Tuesday it had been in talks with John Malone's cable company Liberty world regarding forming a venture within the European country.

Liberty world owns Ziggo, the most important cable TV operator within the European country, whereas Vodafone is that the second biggest mobile network operator, behind KPN.

The two firms were in drawn-out talks regarding associate exchange of assets or broader merger across varied European markets last year however couldn't agree on valuations.

Vodafone same it had been currently in talks with Liberty world specifically regarding the creation of a venture within the European country that will incorporate each companies' native in operation businesses.

"The discussions square measure in progress and don't extend on the far side the creation of a venture within the European country," it said.

Shares in Vodafone reversed earlier gains to trade down two p.c at 221 pence at 1553 universal time, reflective some investors' disappointment that any tie-up was restricted to European nation.

Liberty's shares were flat in ny.

Vodafone is returning beneath increasing pressure in national markets from former national telecoms network monopolies like Deutsche Telekom, Telefonica, KPN and currently BT, that square measure ready to sell packages of broadband net,

TV and mobile telecoms services.

It is responding with a two-pronged strategy of building its own infrastructure and seeking complementary deals with different firms country by country and has already spent fifteen billion euros shopping for cable operators Kabel Federal Republic of Germany|Deutschland|FRG|European country|European nation} in Germany and musician in Spain.

Just last week, analyst German Dellis at Jefferies same Vodafone required to shop for Liberty world to secure its long prospects.

Stephane Beyazian at Raymond James same some investors expected a wider deal between the 2 covering additional markets - they need mutual operations in seven European countries - or maybe that Liberty world would buy up Vodafone.

"Today what you see is that the market reaction of a number of the optimistic investors that were hopeful of a far larger combination, however it does not forestall it from happening long run," he said.

There was pressure to try and do one thing quickly within the European country as a result of KPN's quad-play bundle was proving popular customers, he said.

A tie-up within the European country would collect Vodafone's five.2 million mobile customers with Ziggo's four.1 million cable subscribers, several of whom additionally take broadband net and glued line telecoms.