Vodafone negotiating to buy ONO's FTTH
Juan Fernandez Gonzalez | 27-01-2014
Vodafone is negotiating to buy Spanish fibre-to-the-home (FTTH) operator ONO within the coming months. Vodafone's intention to reinforce its position in the Spanish market and move to fibre and TV has been apparent since the operator sold 45% of Wireless to Verizon for $98,000 million.
According to the financial newspaper Expansion, although no official statements have been made by Vodafone or ONO, the deal could be closed in the near future.
ONO's intention to go public could be putting pressure on Vodafone, as the Spanish fibre operator is looking to increase its capital before floating on the stock market. According to the newspaper, ONO's board of directors and investors are studying two options: to increase capital and go public or just sell the company for the best offer.
ONO's intention was always to go public before summer, which is why Vodafone may be speeding up negotiations. The European cable market has been experiencing some important moves lately and Vodafone may be looking to catch ONO before other companies can get a look in.
In addition, Telefónica is also strengthening its position in the cable business, aiming to reach seven million homes with FTTH by the end of the year. These numbers are far above the nearly 900,000 fibre subscribers Vodafone has currently, a figure which could be substantially increased by adding the over 1.5 million ONO customers.