UPDATED. Spanish operator ONO has rejected bids from Vodafone and Liberty Global, according to local reports.
Instead, the company is preparing for an IPO. Talking to Catalan newspaper La Vanguardia a person close to the board of ONO said preparations for an IPO are in an advanced stage and could happen during the first half of the year.
The board of ONO met Tuesday, February 11, and agreed to call a shareholders meeting by mid-March because shareholders also need to approve the IPO. The date was set on March 13.
Meanwhile, Grupo Corporativo ONO has confirmed reports that its board has approved a proposal for the Spanish cable operator to start the process for a €7B ($9.6B) IPO but that directors didn’t discuss any buyout proposals.
An Ono statement said: “At the meeting, the Board reiterated its support for the management’s current strategic focus.
“The Board welcomed the significant improvement in the Group’s operational performance in 2013, which was supported by stronger penetration in mobile services, as well as increased demand for triple-play offers of Internet, TV and fixed telephony.
“In addition, the Board endorsed the pursuit by management of the steps required for a possible stock market listing of the company. No proposal to acquire Ono, or any related matter, was presented to or discussed by the board of directors.”
Vodafone was reported over the weekend to have made a formal offer for ONO. Bloomberg later reported a bid would need to be in the €7 – €8 billion range to win board approval.
However, sources with knowledge of the matter have said that any buyer could have to pay up to EUR 9 billion to convince Ono’s owners to drop their plans for a stock market flotation.
Investment funds Providence Equity Partners, Thomas H. Lee Partners, CCMP Capital Advisors, and Quadrangle Capital own a controlling 54% of ONO.
