Quote:
Originally Posted by Pierre
Well no figure has been provided but considering LG bought VM for around 23 Billion dollars 7 years ago and O2 was valued at £10 billion 5 years ago I would be interested in how VM would be the lesser partner in a 50:50 merger that they would have supplement the deal with cash.
Now if LG/VM were to “buy” O2 in a stocks and cash offer, then obviously I could see cash payment.
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As you say,
VM was bought in 2013 for £15bn some seven years ago. A lot can happen in seven days let alone seven years but I too am surprised to see it valued at less than O2. Per the
Bloomberg article, New Street Research has valued O2 UK at £12.6bn ($15.8bn).
The Daily Telegraph says we should know more of the details on Wednesday so there could be a bit more to the transaction than what has been reported to date. For example, is it possible that Virgin Mobile may not be included due to potential competition issues? An O2 UK-VM combination will take
their combined mobile market share above 29% which normally triggers an enquiry by the UK competition authorities. Perhaps Liberty Global may sell the VM mobile customer base separately to another provider like Three?