MADRID (Reuters) – Vodafone and MasMovil denied a report by El Confidencial news website, says the Spanish mobile operator, was working with Goldman Sachs to buy the British telecoms company in Spain and 6 billion euros ($6.67 billion).
FILE PHOTO: a Branding, a hanging, outside a Vodafone shop in Oxford, united Kingdom, May 16, 2017. REUTERS/Toby Melville
MasMovil and Goldman Sachs, have held talks with the world’s second-largest mobile phone operator in relation to the Spanish business, Spanish web site reported, citing unnamed sources close to the negotiations.
El Confidencial said, MasMovil, which has grown considerably in the past few years, through acquisitions, in many cases, is being funded by the US investment bank last summer, has submitted a non-binding offer was turned down by Vodafone, which is in place, ask for an 8 billion euro for the Spanish unit.
The website added that the consultancy firm, McKinsey, has also been involved in and responsible for a strategic plan that includes estimated cost savings or synergies of 2 billion euros.
“MasMovil, it is not a process to acquire, merge with, or for the establishment of a joint venture with Vodafone in Spain,” with a MasMovil spokesman said.
A Vodafone spokesman said: “There is no truth whatsoever in the speculation is that Vodafone is in talks with MasMovil.”
“In the spring, the demand for an 8 billion-euro, or a song, it’s just not true,” he added.
“Vodafone has never been asked for an offer for Vodafone Spain and to everyone else that there is a price one would be willing to sell the business.”
Vodafone has a market value of about € 50 billion, while the MasMovil is well worth 2.95 billion, an increase of about 15% so far in 2019, Refinitiv of the data turned out to be.
The deal, as reported, would create a company worth some € 9 billion, and to reduce to three the number of operators, with a presence across the whole of the Spanish market, in addition to Telefonica and France’s Orange.
Analysts at Sabadell said it would be a lot of obstacles for such a deal.
The operation of the market, it would have to go from four operators to three and, therefore, are likely to approve of the remedies would be the limit of its appeal, the Spanish real estate agent said.
THE SPANISH STRUGGLE FOR VODAFONE
Vodafone is struggling in Spain, where revenues fell by 9.3% in the first quarter of this year, the worst performance in every major market, and it was worse than the 7.9% decline in the last quarter of the year.
The company’s debt and the steps it has taken to improve its competitiveness, and its decision not to renew the non-profit making soccer judgments.
The introduction of the new rates, including unlimited data tariffs, in both the mobile and retail offers, for the first time in Spain, but the promotions by rivals, and saw the loss 158,000 contract mobile phone customers, 49,000 fixed-broadband customers and 24,000 TV customers.
Reporting by Andres Gonzalez and Paul Sandle written by by Jose Elías Rodríguez; editing by Jason Neely and Kirsten Donovan