Vodafone share price: Group in talks with Sky Network about NZ merger
Vodafone Group (LON:VOD) is in talks with Sky Network about a possible merger of their New Zealand businesses, the pay TV company has said. The news comes as two firms already work together on some digital online offerings.
Vodafone’s share price has been subdued in London in today’s session, having lost 0.52 percent to stand at 229.95p as of 13:22 BST. The shares are slightly underperforming the broader market, with the benchmark FTSE 100 index having inched 0.09 percent higher to 6,290.27 points. The telco’s shares have lost nearly six percent of their value over the past year, but are up some four percent in the year-to-date.
Sky Network Television confirmed in a short statement to the New Zealand stock exchange today that it was in discussions with Vodafone “regarding a potential transaction involving a combination of the businesses of SKY and Vodafone New Zealand”. The company, however, cautioned that the discussions were “ongoing and incomplete and may not result in a transaction occurring”.
The Australian reported that Vodafone’s New Zealand unit had drafted in Deutsche as an adviser on the merger discussions, while Citi had been known to be in Sky’s camp. Sources told the newspaper that Sky was hoping to conclude a deal with Vodafone NZ by the time trading in its shares resumes. The pay TV group’s shares entered a trading halt today following the confirmation of discussions between the two parties.
Reuters noted in its coverage of the news that the two companies already cooperate on some digital online offerings and Vodafone NZ offers Sky content as part of its packages. The newswire noted that Vodafone NZ had declined to comment on any possible transaction while Sky had said it would not comment further.
As of 13:58 BST, Wednesday, 08 June, Vodafone Group plc share price is 229.90p.
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