According to El Economista, quoting sources familiar with the matter, initial contacts between the two companies have taken place in recent days through financial intermediaries. Should they lead to a transaction, the third largest telco in Spain would take over the fourth and regain second spot from Orange, which it lost two years ago.
Vodafone’s reported move is taking place against the backdrop of the successful public acquisition offer of MásMóvil by Lorca Telecom Bidco, a consortium of Providence, Cinven and KKR, which already owns 86% of the telco, after agreeing to pay €2.56 billion and taking on debts of €2 billion.
Although a takeover of MásMóvil by Vodafone would reduce the number of operators in the Spanish market, it would also intensify the competition between Telefónica, Orange and Vodafone.
Vodafone would probably have to pay in the region of €6 billion and take on the debt of €2 billion in order to acquire MásMóvil.