Vodafone shares surge after Goldman says asset sales more likely
By Bloomberg
Vodafone Group Plc shares rose as much as 5.6 percent on Friday as Goldman Sachs Group Inc. said the company may sell some assets, days after Liberty Global Plc’s John Malone said a combination with the mobile phone operator would be attractive.
The shares have gained more than 11 percent since Wednesday, the biggest three-day intraday gain in almost two years.
Malone said Tuesday that his cable empire’s assets in western Europe would be a “great fit” with Vodafone, sending shares of both companies up this week. Vodafone “is willing to consider both acquisitions and disposals where the financial rationale makes sense,” Goldman analyst Tim Boddy said in a note Thursday after meeting with Vodafone’s management.
Vodafone “may be more likely a seller than a buyer of assets” given Liberty’s preference for a tax-efficient capital structure and Vodafone’s contrasting preference for dividends, said Boddy, who recommends investors buy the shares.
Vodafone rose 4.7 percent to 254 pence at 9:38 a.m. Friday, after earlier touching 256 pence. The stock has gained 14 percent so far this year.
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