Vodafone calls off talks with Liberty

VODAFONE’S shares slipped by nearly 5pc after it ended tie-up talks with Virgin Media owner Liberty Global.

British group Vodafone, which is the world’s second-largest mobile company, had been in talks with John Malone’s cable empire since the summer.

The pair were discussing swapping some European businesses.

Analysts had been expecting them to consolidate operations in the UK, Germany and the Netherlands.

Yesterday Vodafone said: ‘Discussions with Liberty Global have terminated.’

It is believed that talks broke down over price, and how to meet with the approval of regulators across several countries.

Vodafone’s shares slipped yesterday afternoon by 4.8pc to close 10.45p lower at 207.2p.

John Malone revealed earlier this month that the talks had reached an impasse. ‘We haven’t been able to figure out a way to do it that’s mutually successful,’ he said.

He described the negotiations as a ‘tennis match’ of proposals between the two sides.

Telecoms firms are increasingly offering more services in a bid to entice consumers to stay with them for longer. BT is buying EE for £12.5bn to offer four services – mobile, home phone, internet and TV.

Vodafone, which offers some broadband and TV packages across Europe, last month launched its own home internet services in the UK.

But combining with Virgin Media, which has millions of customers as well as its own cable network, would have given the company a huge customer base.

Robert Grindle, analyst at Deutsche Bank, said: ‘We take this [to mean] that all talks are over, but note that the two companies have overlapping interests in a number of markets and talks could be restarted at a later date.’

He added: ‘Talks can be reinstated as these discussions were not subject to any takeover timetable. We are pleased Vodafone has not rushed to do another fixed deal at any price and there may be an opportunity to exploit overlap with Liberty assets, on more attractive terms, at a later date.’